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Markets Update: APAC Stocks Rise on Strong Earnings - More blowout results from Nvidia drive markets higher; Modest equity gains generally seen, Nasdaq FUTs outperform
Economic Calendar
Global Markets Roundup: 24 Aug 2023
Nvidia's Strong Earnings and Buyback Announcement Boost APAC Stocks Nvidia shares rose 6.6% in after-hours trading after the company reported strong second-quarter earnings and announced an additional $25 billion in buybacks.
The company's revenue beat analyst expectations by 5.5%, while its earnings per share beat expectations by 10.5%.
The gains in Nvidia shares helped to boost APAC stocks on Thursday. The Nikkei 225 rose 1.3%, the Hang Seng Index rose 1.1%, and the Shanghai Composite Index rose 0.7%.
European equity futures are also pointing to a higher open, with the Eurostoxx 50 future up 0.7%. The US dollar index (DXY) was little changed, trading around 103.00. The euro was flat against the dollar, at 1.08, while the pound was also flat, at 1.27.
The Japanese yen was slightly stronger against the dollar, at 145.00. Union members at Woodside's LNG facilities will meet today to discuss an in-principle agreement reached with the company. The agreement would avert a strike that had been threatened by the union.
The Australian stock market (ASX 200) was positive amid the continued influx of earnings and as strength in tech and financials atoned for the underperformance in the defensive sectors. The index rose 0.8%.
The Japanese stock market (Nikkei 225) extended above the 32,000 level with semiconductor names in Asia riding the Nvidia wave. The index rose 1.2%.
The South Korean stock market (KOSPI) was boosted with the index unfazed by North Korea’s latest failed ‘satellite’ launch, while the Bank of Korea (BoK) provided no surprises and maintained its base rate at 3.50%, as unanimously expected. The index rose 0.7%. The Hong Kong stock market (Hang Seng) and the Chinese stock market (Shanghai Composite) conformed to the upbeat mood in which the Hong Kong benchmark climbed back above 18,000 amid tech strength, although gains in the mainland were limited after the People's Bank of China’s (PBoC) liquidity drain and as participants await more big bank earnings.
The Hang Seng index rose 1.0%, while the Shanghai Composite index rose 0.4%. US equity futures (ES +0.8%, NQ +1.3%) were underpinned in the aftermath of Nvidia's earnings and strong guidance. The S&P 500 is expected to open higher by 0.5%. European equity futures are indicative of a higher open with the Eurostoxx 50 future +0.7% after the cash market closed up by 0.2% yesterday.
FX
The US dollar index (DXY) was kept afloat but with price action rangebound after the prior day’s choppy mood and eventual softening alongside a decline in yields in the aftermath of the softer PMI data releases from the US.
The euro traded sideways after yesterday’s intraday recovery from support near the 1.0800 level.
The pound lacked firm direction following its recent brief dip beneath the 1.2700 handle.
The Japanese yen reclaimed the 145.00 status after sliding alongside narrower yield differentials.
The Australian dollar and New Zealand dollar held on to most of their recent spoils amid a quiet calendar and improved risk tone.
Fixed Income
10-year US Treasury futures mildly pulled back from the prior day’s highs after surging to near the 110.00 level as yields retreated in the aftermath of weak PMI data.
German bund futures extended on their gains owing to the contractions across the bloc’s PMI releases.
10-year Japanese government bond (JGB) futures tracked the recent advances in global counterparts with slightly stronger demand seen in the enhanced liquidity auction for long- to super-long JGBs.
Commodities
Crude futures were lacklustre amid talks on potential sanctions relief for Venezuela and with an in-principle agreement reached between Woodside Energy and union negotiators which members will discuss today.
Woodside Energy (WDS) said it continues to engage actively and constructively in the bargaining process with unions over Australian LNG facilities and substantial progress was made in talks and parties reached an in-principle agreement on a number of issues, while it added that it has not received any notices of protected industrial action. Furthermore, the Australian union said members at Woodside’s LNG facilities will meet today to discuss an in-principle agreement reached with the Co. by their negotiating team and that Woodside made their members a strong offer without industrial action being taken.
Venezuela and the US are reportedly in talks over possible sanctions relief, while the White House later said the US is prepared to provide sanctions relief should Venezuela take actions toward restoring democracy leading to free elections but noted that sanctions remain in effect as it has not taken the necessary steps.
Spot gold marginally extended on yesterday's gains after having reclaimed the USD 1900/oz level.
Copper futures lacked firm direction amid the improved risk tone and recent weak PMI data.
Looking ahead, key economic data releases include US durable goods orders and initial jobless claims. The Fed's Jackson Hole Symposium will also take place this week, and speeches from Fed officials will be closely watched.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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