Global Markets:
- Asian Stock Markets : Nikkei up 1.80%, Shanghai Composite up 1.13%, Hang Seng up 1.16%, ASX up 0.63%
- Commodities : Gold at $1942.40 (0.17%), Silver at $24.22 (-0.01%), Brent Oil at $84.19 (0.24%), WTI Oil at $80.22 (0.37%)
- Rates : US 10-year yield at 4.226, UK 10-year yield at 4.486, Germany 10-year yield at 2.564
News & Data:
- (USD) Revised UoM Consumer Sentiment 69.5 vs 71.2 expected
Markets Update:
Asia-Pacific markets kicked off the final week of August with Mainland Chinese and Hong Kong stocks taking the lead in gains. Chinese authorities implemented a reduction in the stamp duty on stock trades, effective from Monday, aiming to invigorate the capital market and enhance investor confidence. This move triggered a 2.31% surge in the benchmark CSI 300 index, while Hong Kong’s Hang Seng index recorded a 1.16% jump, driven by notable growth in consumer cyclicals and health-care stocks.
Meanwhile, China Evergrande Group, the world’s most indebted property developer, saw its shares plummet by 87% as trading resumed after a 17-month hiatus. In Japan, the Nikkei 225 index climbed by 1.80%, and the Topix index rose by 1.35%. South Korea’s Kospi index increased by 0.67%, accompanied by a 0.93% advance in the Kosdaq index.
Australia’s S&P/ASX 200 index experienced a 0.63% gain, supported by a 0.5% month-on-month rise in retail sales, surpassing economists’ expectations of 0.3%. On the global front, U.S. Federal Reserve Chair Jerome Powell noted that inflation remains elevated, hinting at potential further rate hikes. In response, all major U.S. indexes exhibited positive movement, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite rising by 0.7%, around 0.7%, and about 0.9%, respectively. This positive shift marked the end of three consecutive weeks of losses for the S&P and Nasdaq.
Upcoming Events:
- 11:01 PM GMT – GBP BRC Shop Price Index y/y
- 11:30 PM GMT – JPY Unemployment Rate
