12/09/2023
Today’s Announcements & News
Asia
In Asia-Pacific markets on Tuesday, mixed performances were observed, influenced by developments in Wall Street’s tech sector, bond markets, and real estate. Notably, Tesla and Qualcomm drove a tech rally in the U.S., while a report on the Federal Reserve’s rate decisions positively impacted investor sentiment. In Hong Kong, the Hang Seng index fell slightly, but shares of real estate developer Country Garden Holdings saw significant gains. Mainland Chinese stocks remained subdued, the Australian market showed a slight increase, South Korea’s Kospi and Kosdaq had mixed results, and Japan’s Nikkei 225 rebounded from a three-day decline. These market movements reflect the complex interplay of global tech trends and regional factors influencing investor decisions across Asia-Pacific markets.
US
U.S. stock futures remained relatively stable on Tuesday night as investors awaited the release of the consumer price index (CPI) for insights into inflation trends. Dow Jones Industrial Average futures, S&P 500 futures, and Nasdaq 100 futures all showed minimal movements.
During the primary trading session on Tuesday, major indices experienced losses. The Nasdaq Composite was notably down by 1%, primarily due to tech sector pressures. The S&P 500 also declined by nearly 0.6%, while the Dow Jones had a marginal dip. Specific tech stocks like Apple and Oracle faced challenges, contributing to these declines.
Market attention has now shifted to the upcoming release of the August CPI report, scheduled for Wednesday morning. Economists anticipate a 3.6% year-over-year increase in inflation, which would be higher than the previous month’s reading of 3.2%. Core CPI, which excludes food and energy prices due to their volatility, is expected to show a 4.3% increase in August, compared to a 4.7% rise in July.
The financial markets have largely factored in an expectation of the Federal Reserve pausing its rate hikes at the next meeting. As of Tuesday evening, Fed funds futures pricing data indicated a 93% probability of interest rates remaining unchanged, as per the CME FedWatch Tool. Investors will closely monitor inflation trends in the service sector, according to Matt Stucky, a senior portfolio manager at Northwestern Mutual Wealth Management Company.
Commodity
U.S. stock futures showed little movement on Tuesday night as investors awaited the release of the Consumer Price Index (CPI) to gain insights into inflation trends. Futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 exhibited minimal fluctuations.
During the primary trading session on Tuesday, major stock indices experienced losses. The Nasdaq Composite, in particular, declined by 1%, largely due to pressure on the technology sector. The S&P 500 also saw a nearly 0.6% decrease, while the Dow Jones posted a slight decline. Specific tech companies like Apple and Oracle faced challenges, contributing to these overall declines.
Investor attention has now shifted to the forthcoming release of the August CPI report, scheduled for Wednesday morning. Economists anticipate a year-over-year inflation increase of 3.6%, which would be higher than the previous month’s reading of 3.2%. Core CPI, which excludes food and energy prices due to their volatility, is expected to show a 4.3% increase in August, compared to a 4.7% rise in July.
The financial markets have largely priced in an expectation of the Federal Reserve pausing its rate hikes at the upcoming meeting. As of Tuesday evening, Fed funds futures pricing data indicated a 93% probability of interest rates remaining unchanged, according to the CME FedWatch Tool. Investors are keenly watching inflation trends, particularly in the service sector, according to Matt Stucky, a senior portfolio manager at Northwestern Mutual Wealth Management Company.
In the realm of precious metals, gold slipped to a more than two-week low on Tuesday, driven by a rebounding dollar, as investors positioned themselves ahead of the U.S. inflation data scheduled for Wednesday. Spot gold was down 0.6% at $1,909.50 per ounce, marking its lowest level since August 25. U.S. gold futures also dipped 0.8% to $1,932.60.
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.