Today’s Announcements & News
Asia-Pacific markets showed mixed trends on Friday following the release of U.S. inflation data that came in lower than expected, raising hopes for a potential “soft landing” in the fight against inflation.
In July, U.S. consumer prices increased by 3.2% on an annual basis, slightly below the 3.3% consensus among economists polled by Dow Jones. On a month-to-month basis, inflation rose by 0.2%, in line with expectations. The report also indicated that real average weekly earnings remained unchanged last month, which was seen as a positive sign.
However, the core inflation rate, which excludes food and energy prices, stood at 4.7%, marking its lowest level since October 2021 and coming in lower than the expected 4.8%.
In the Asia-Pacific region, Australia’s S&P/ASX 200 closed 0.24% lower at 7,340.1, while South Korea’s Kospi was down by 0.4% to end the day at 2,591.3. The Kosdaq index gained 0.1% to finish at 912.2. Hong Kong’s Hang Seng index slipped 0.79% in its final hour of trading, and stocks in mainland China also experienced declines, with the CSI300 index trading 2.3% down and closing at 3,884.25. Japan’s markets remained closed for a public holiday.
On Sunday evening, stock futures showed a slight rise as Wall Street aimed to recover from a challenging start to August.
– Futures linked to the S&P 500 increased by 0.2%.
– Nasdaq 100 futures gained 0.2%.
– Dow Jones Industrial Average futures added 0.1%.
This follows a period where stocks have faced difficulties in maintaining their upward momentum in late summer. Last week, the S&P 500 and Nasdaq Composite experienced declines of 0.31% and 1.90%, respectively. This marked the Nasdaq Composite’s first two-week consecutive loss this year. However, the Dow Jones Industrial Average managed to gain 0.62%, marking its fourth positive week out of five.
The upcoming week is anticipated to be influenced by insights into the state of the U.S. consumer. Earnings reports are expected from major retailers like Home Depot, Target, and Walmart. Furthermore, retail sales data for July is scheduled to be released on Tuesday morning.
These earnings reports follow a mixed series of inflation reports from the previous week. These reports indicated that while price increases have moderated from their post-pandemic highs, they still remain above the Federal Reserve’s target of 2%.
On Friday, oil prices experienced a slight increase following a forecast from the International Energy Agency (IEA) that predicted record global demand and tightening supplies. This development pushed prices to achieve the seventh consecutive week of gains, marking the longest such streak since 2022.
Here are the key details:
– Brent crude futures increased by 19 cents, or 0.22%, reaching a settlement price of $86.59 per barrel.
– U.S. West Texas Intermediate (WTI) crude futures gained 22 cents, or 0.27%, settling at $83.05 per barrel.
– Throughout the week, both Brent crude and WTI crude benchmarks saw a rise of approximately 0.5%.
The IEA’s estimation indicated that global oil demand reached a historic high of 103 million barrels per day in June, and there is potential for another peak in demand this month.
Furthermore, output cuts that have been implemented by major oil-producing countries such as Saudi Arabia and Russia are poised to lead to a significant reduction in oil inventories throughout the remainder of 2023. The IEA suggested that this inventory decline could potentially contribute to driving oil prices even higher.
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.