Global Markets:
- Asian Stock Markets : Nikkei down 0.64%, Shanghai Composite down 0.44%, Hang Seng down 0.97% ASX down 0.22%
- Commodities : Gold at $2036.5 (0.17%), Silver at $24.23 (0.34%), Brent Oil at $77.56 (0.62%), WTI Oil at $72.07 (0.73%)
- Rates : US 10-year yield at 3.906, UK 10-year yield at 3.734, Germany 10-year yield at 2.026
News & Data:
- (USD) Flash Manufacturing PMI 48.2 vs 49.5 expected
- (USD) Flash Services PMI 51.3 vs 50.7 expected
- (USD) Industrial Production m/m 0.2% vs 0.3% expected
Markets Update:
Most Asia-Pacific markets began the penultimate week of 2023 lower, except for South Korea, which saw gains driven by defense stocks. Last week, these markets surged following the U.S. Federal Reserve’s decision to maintain rates and plans for future cuts in 2024 and 2025.
As the Bank of Japan gears up for its final meeting this year, expectations lean toward no major policy changes, though a shift in future policy tone is anticipated. Economists predict the BOJ will maintain its benchmark interest rate at -0.1%.
Upcoming events include China’s announcement of loan prime rates and Japan’s release of inflation data. Australia’s S&P/ASX 200 ended a six-day winning streak, closing 0.22% lower at 7,426.40.
Japan’s Nikkei 225 and Topix declined by 0.64% and 0.71%, respectively. South Korea’s Kospi initially dropped but later rose by 0.27%, while the Kosdaq surged by 1.75%, with defense companies experiencing an uptrend.
In the U.S., markets closed with mixed results on Friday. The Dow Jones Industrial Average set a new intraday record, rising by 0.2%, and the Nasdaq Composite increased by 0.4%. Meanwhile, the S&P500 saw a slight dip but extended its winning streak to seven weeks, marking its longest since 2017.
Upcoming Events:
- 1:30 PM GMT – CAD NHPI m/m
- 3:00 PM GMT – USD NAHB Housing Market Index
