Today’s Announcements & News
Asia-Pacific markets displayed a mixed performance on Monday as investors closely monitored upcoming central bank decisions and policy updates.
The key focus was on the U.S. Federal Reserve’s decision scheduled for early Thursday in Asia. Markets were eager to understand the Fed’s stance on monetary policy, particularly in light of inflation and the economic recovery.
Australia’s central bank was expected to release the minutes of its September 5 policy meeting on Tuesday, providing insights into the Reserve Bank of Australia’s perspectives on the domestic economy and potential policy adjustments.
The Bank of Japan’s monetary policy meeting, concluding on Friday, was anticipated to offer clarity on when the BOJ might begin shifting its ultra-easy monetary policy, a significant development for Japan’s economic outlook.
Additionally, the People’s Bank of China was set to announce its loan prime rate decisions on Friday, which would have implications for China’s domestic lending conditions.
Australia’s S&P/ASX 200 started the week with a 0.67% decline. South Korea’s Kospi slipped by 1.02%. Hong Kong’s Hang Seng index declined by 1.4%. Mainland Chinese markets, represented by the CSI 300, posted a gain of 0.51%, breaking a streak of losses. Japan’s markets were closed for a public holiday.
Investors were positioning themselves for potential market-moving announcements and policy changes from central banks in the region and the U.S. throughout the week.
Stocks closed with minimal changes on Monday as investors awaited the upcoming Federal Reserve meeting scheduled later in the week.
The S&P 500 edged up 0.07% to close at 4,453.53. The Nasdaq Composite added a mere 0.01%, finishing at 13,710.24. The Dow Jones Industrial Average advanced 0.02%, or 6.06 points, closing at 34,624.30.
The Federal Reserve’s two-day policy meeting was set to commence on Tuesday, with the rate decision scheduled for release on Wednesday. Market sentiment leaned heavily toward an expectation that the central bank would maintain its current stance, with a 99% probability according to the CME Group’s FedWatch tool, which tracks futures market pricing. The Fed was also anticipated to provide insights into its market forecasts.
However, there remained uncertainty regarding the Fed’s actions in November, with market expectations suggesting around a 31% chance of a rate hike. Some analysts, such as those from Goldman Sachs, considered a November rate increase to be unlikely.
Investors were primarily focused on the forward guidance and messaging from the Federal Reserve during the meeting, as it could provide important insights into the central bank’s future plans.
In terms of individual stocks, Apple experienced a 1.7% increase in its share price, boosted by optimistic outlooks for new iPhone demand from Goldman Sachs and Morgan Stanley.
Certainly, here’s the information without bullet points:
Oil prices increased on Monday, briefly approaching the $95 per barrel mark, driven by expectations of a supply deficit resulting from extended output reductions by Saudi Arabia and Russia, as well as sluggish shale production.
Global oil benchmark Brent crude futures settled at $94.57 a barrel, up 64 cents. U.S. West Texas Intermediate (WTI) crude futures rose $1.24 to $92.02 per barrel.
Saudi Arabia and Russia had recently decided to extend their combined supply cuts by 1.3 million barrels per day (bpd) until the end of the year, contributing to supply tightness in the oil market.
Furthermore, U.S. oil production from major shale-producing regions was expected to decline for the third consecutive month in October, reaching its lowest level since May 2023, according to a report from the U.S. Energy Information Administration (EIA).
Gold prices also saw gains on Monday, supported by a modest weakening of the U.S. dollar as investors awaited important central bank policy meetings scheduled for the week. The U.S. Federal Reserve was widely anticipated to maintain its current stance on interest rate hikes.
Spot gold increased by 0.3% to reach $1,933.5634 per ounce by 4:24 p.m. EDT. U.S. gold futures gained 0.4%, closing at $1,955.3 per ounce.
The slight decline in the U.S. dollar’s value against other major currencies made gold more affordable for holders of other currencies, contributing to its price increase.
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.