11/07/2023
Today’s Announcements & News
Asia
In the Asia-Pacific region, markets were mixed as investors awaited key inflation reports, particularly the U.S. consumer price index and producer price index. China’s consumer price index remained flat in June compared to the previous year, reaching its lowest level since February 2021. Producer prices, on the other hand, experienced a 5.4% year-on-year decline, marking the fastest rate of decline since December 2015.
U.S. Treasury Secretary Janet Yellen concluded her visit to Beijing, describing the talks as “direct” and “productive,” which helped improve bilateral ties.
In Japan, the Nikkei 225 extended its losing streak to five days with a 0.61% decrease, closing at 32,189.73. The Topix index also experienced a 0.61% loss, ending at 2,243.33.
South Korea’s Kospi index closed 0.24% lower at 2,520.7, marking its fifth consecutive day of losses. The Kosdaq index saw a decline of 0.8%, closing at 860.25.
Australia’s S&P/ASX 200 index fell 0.54% to 7,004, reaching its lowest level since March 27.
Hong Kong’s Hang Seng index rebounded and climbed 0.58% in its final hour of trade, while mainland Chinese markets ended the day higher. The Shanghai Composite index gained 0.22%, closing at 3,203.7, and the Shenzhen Component rose 0.5% to end at 10,942.83, snapping a three-day losing streak.
US
On Monday, the Dow Jones Industrial Average experienced a positive reversal as Wall Street attempted to recover from a previous losing week. Investors were preparing for a series of inflation data releases later in the week and bracing themselves for the start of the second-quarter earnings season.
The 30-stock Dow Jones Industrial Average added 209.52 points, or 0.62%, and closed at 33,944.40. The broader S&P 500 index rose by 0.24% to end at 4,409.53, while the Nasdaq Composite index gained 0.18% to close at 13,685.48. This marked the end of a three-day losing streak for the major averages.
Investors are eagerly awaiting the consumer price index report scheduled for release on Wednesday, which will be followed by the producer price index on Thursday. These reports provide insights into inflation and wholesale price pressures, respectively.
Commodity
On Monday, oil prices experienced a 1% decrease due to the increasing likelihood of additional interest rate hikes in the United States. However, the losses were limited by the crude supply cuts implemented by major oil exporters Saudi Arabia and Russia.
Brent crude futures settled down 78 cents, or 1%, at $77.69 a barrel, after reaching their highest level in over two months earlier in the trading session.
U.S. West Texas Intermediate crude fell 87 cents, or 1.2%, to $72.99.
On Monday, gold prices remained largely unchanged as investors awaited U.S. inflation data, which could have an impact on the Federal Reserve’s monetary policy decisions. At the same time, palladium prices dropped below $1,200 per ounce for the first time since December 2018.
Spot gold held steady at $1,925.30 per ounce, while U.S. gold futures settled 0.1% lower at $1,931.
According to Jim Wyckoff, senior analyst at Kitco, gold has strong support on the charts at $1,900. However, if inflation remains high, it could push gold below that level, potentially causing prices to quickly drop to the $1,848 level.
The key focus this week will be on the U.S. Consumer Price Index (CPI) data, scheduled to be released on Wednesday. Last week’s Federal Reserve minutes revealed that a majority of policymakers anticipated further tightening of monetary policy.
The above analysis is only for the views of market researchers and is for reference only and is not regarded as a specific investment suggestion.
