31/07/2023
Today’s Announcements & News
Asia
On Friday, Japan’s Nikkei 225 experienced a significant decline of up to 2.4% after the Bank of Japan made adjustments to its yield curve control policy. The benchmark index closed 0.4% lower at 32,759.23, while the Topix saw a smaller loss of 0.2%, ending at 2,290.61.
The Bank of Japan also maintained its benchmark policy rate at -0.1%, as anticipated by economists polled by Reuters. The central bank stated that it will continue to allow 10-year government bond yields to fluctuate within the range of approximately plus and minus 0.5%. However, it plans to exercise yield curve control with greater flexibility, treating the upper and lower bounds of the range as references rather than strict limits in its market operations.
In Australia, the S&P/ASX 200 declined by 0.7%, closing at 7,403.6, following lower-than-expected retail sales figures for June, which fell by 0.8% year on year, contrary to predictions from a Reuters poll.
South Korea’s markets, on the other hand, performed positively, with the Kospi rising by 0.17% to close at 2,608.32, and the Kosdaq gaining 3.39%, closing at 913.74.
In Hong Kong, the Hang Seng index climbed by 1.43% in its final hour of trade. Meanwhile, the Shanghai Composite experienced a notable increase of 1.84%, closing at its highest level since May 22, and the Shenzhen Component gained 1.62%, ending at 11,100.4.
US
On Friday, stocks in the U.S. rose, with both the Dow Jones Industrial Average and the S&P 500 closing out their third consecutive weeks of gains. The Dow surged by 176.57 points, or 0.50%, closing at 35,459.29. The S&P 500 added 0.99% to end at 4,582.23, while the Nasdaq Composite gained 1.90%, reaching 14,316.66.
All three major stock averages recorded weekly gains, with the 30-stock Dow increasing by approximately 0.66%. Notably, the Dow had recently concluded a 13-day winning streak on Thursday, a duration not seen since 1987. Meanwhile, the S&P 500 advanced 1.01% during the week, and the tech-heavy Nasdaq Composite rose by 2.02%.
Investors responded positively to data indicating a slowdown in inflation and stronger-than-expected earnings reports, boosting confidence that the U.S. economy might evade a recession.
Regarding inflation, the June data for the personal consumption expenditures price index continued to show a decline in inflationary pressures. The core PCE gauge, a closely-watched measure by the Federal Reserve, registered a 0.2% month-over-month increase, aligning with economists’ expectations polled by Dow Jones. On a year-over-year basis, core PCE rose by 4.1%, slightly lower than the projected 4.2%.
Commodity
Oil prices remained steady on Friday, poised to record a fifth consecutive week of gains, as investors maintained optimism about robust demand and supply reductions supporting prices.
The broader financial markets showed an increased risk appetite, driven by the belief that central banks, including the Federal Reserve and the European Central Bank, are nearing the conclusion of their tightening policies. This positive sentiment has improved the outlook for global economic growth and energy demand.
Thanks to supply cuts announced by the OPEC+ alliance earlier in the month, both oil benchmarks are on track to achieve a 3.6% weekly increase, marking the fifth consecutive week of gains.
Meanwhile, gold rebounded slightly on Friday as the U.S. dollar retreated. However, the precious metal was still heading for its worst week in five, triggered by data indicating a resilient U.S. economy, which dampened expectations for a dovish shift in U.S. monetary policy.
As of 1133 GMT, spot gold rose 0.6% to $1,956.69 per ounce, recovering from its lowest level since July 12. Similarly, U.S. gold futures increased by 0.5% to $1,955.70.
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.
