Global Markets:
- Asian Stock Markets : Nikkei up 1.11%, Shanghai Composite down 0.28%, Hang Seng up 1.03%, ASX up 1.29%
- Commodities : Gold at $1939.45 (0.33%), Silver at $23.35 (1.57%), Brent Oil at $93.81 (0.23%), WTI Oil at $90.39 (0.24%)
- Rates : US 10-year yield at 4.326, UK 10-year yield at 4.386, Germany 10-year yield at 2.642
News & Data:
- (USD) PPI m/m 0.7% vs 0.4% expected
- (USD) Retail sales m/m 0.6% vs 0.1% expected
- (USD) Unemployment Claims 220K vs 226K expected
Markets Update:
The Asia-Pacific markets experienced a notable upswing, bolstered by a series of positive economic indicators from China for the month of August, which surpassed market expectations. China’s August retail sales and factory output exceeded forecasts, contributing to market optimism. However, the print for fixed asset investment in China fell slightly below expectations, and home prices dipped by 0.1% in August compared to the previous year.
In Hong Kong, the Hang Seng index rebounded during its final hour, closing with a 1% gain. In contrast, mainland Chinese markets faced headwinds as the CSI 300 index declined by 0.66%, mainly due to a drop in utility stocks. In Japan, the Nikkei 225 index displayed robust performance by surging 1.1% to reach 33,533.09, marking its highest level in over two months.
In Australia, the S&P/ASX 200 index recorded a substantial gain of 1.29%, closing at 7,279, marking its most significant increase since July 13. South Korea’s Kospi index advanced by 1.1%, closing at 2,601.28, its highest level since August 10, while the Kosdaq index remained relatively stable near the flatline at 899.03.
Across the Pacific in the United States, all three major indexes concluded the session with gains. This positive performance was attributed to the core producer price index in the U.S., which rose by 0.2% in August, aligning with market expectations. Additionally, the overall producer price index saw a seasonally adjusted increase of 0.7%, surpassing the estimated 0.4% and marking the most significant monthly gain since June 2022. Specifically, the Dow Jones Industrial Average achieved its most robust performance since August 7, rising by 0.96%, while the S&P 500 index posted a gain of approximately 0.84%, and the Nasdaq Composite index increased by 0.81%.
Upcoming Events:
- 12:30 PM GMT – USD Empire State Manufacturing Index
- 12:30 PM GMT – USD Import Prices m/m
- 1:15 PM GMT – USD Industrial Production m/m
- 1:15 PM GMT – USD Capacity Utilization Rate
- 2:00 PM GMT – USD Prelim UoM Consumer Sentiment
- 2:00 PM GMT – USD Prelim UoM Inflation Expectations
