19/12/2023
Today’s Announcements & News
Asia
Asia-Pacific markets displayed mixed performance at the beginning of the penultimate week of 2023, with South Korean shares standing out as defense stocks led gains. Last week’s rally, driven by the U.S. Federal Reserve’s decision to maintain rates and outline future cuts, was followed by cautious sentiments.
The Bank of Japan’s final meeting for the year is anticipated to maintain major policy settings, with a possible softening tone about future policy. China’s loan prime rates release and Japan’s inflation data are awaited later in the week.
Australia’s S&P/ASX 200 closed 0.22% lower, ending a six-day winning streak. Japan’s Nikkei 225 dropped 0.64%, while the Topix fell 0.66%. South Korea’s Kospi reversed earlier declines to close 0.13% higher, with the small-cap Kosdaq rising 1.51%. Hong Kong’s Hang Seng index dropped about 1%, and the mainland Chinese CSI 300 inched lower, hitting fresh four-year lows.
US
Stocks continued their positive momentum on Monday, with the Dow Jones Industrial Average gaining slightly, the S&P 500 climbing 0.5%, and the Nasdaq Composite advancing 0.7%. Communication services stocks, particularly mega-cap tech names like Meta Platforms and Alphabet, led gains, contributing to the S&P 500 being just over 1% away from its all-time closing high in January 2022. Notable moves included U.S. Steel surging 27% on news of its acquisition by Japan’s Nippon Steel, and Adobe gaining over 2% as it decided to end its $20 billion merger with Figma due to regulatory hurdles. The S&P 500 is on a streak of its longest weekly gains since 2017, with positive monthly performances for major indices. The Dow hit an intraday record on Friday, while the Nasdaq 100 registered a new closing high.
Commodity
Oil prices climbed over 2% on Monday as concerns about oil supply disruptions grew following attacks by the Houthis on ships in the Red Sea. A Norwegian-owned vessel was targeted, prompting major companies like BP to temporarily halt transits through the Red Sea. The West Texas Intermediate (WTI) contract for January rose by $1.90, or 2.66%, reaching $73.33, while the Brent contract for February gained $2.06, or 2.69%, reaching $78.61 per barrel. Despite these geopolitical concerns, market gains were limited by ample oil supply and skepticism around Russia’s plan to cut exports in December.
Gold prices edged higher on Monday, supported by a weaker dollar. Spot gold rose 0.2% to reach $2,022.19 per ounce, while U.S. gold futures remained steady at $2,036.50. Investors are closely monitoring key U.S. inflation data to gain further insights into the Federal Reserve’s approach to interest rates following its recent shift to a more dovish stance.
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.
