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Markets Update: APAC stocks subdued after holiday lull, weak Chinese data - AU RBA rates unchanged; CN Caixin PMI Services weaker than ests; Asia equities give back most of yesterday’s gains;
Economic Calendar
Global Markets Roundup: 05 Sep 2023
Asian stock markets were mostly subdued on Tuesday after a holiday lull in the US and as investors digested disappointing data from China. The Caixin China Services PMI fell to 47.1 in July, below the 49.5 reading expected by economists.
European equity futures were also pointing to a lower open, with the Euro Stoxx 50 futures down 0.1%. The US dollar index was holding above the 104 level, while the euro was trading below 1.08 against the dollar.
The Reserve Bank of Australia (RBA) kept its cash rate target unchanged at 4.1%, as expected. The RBA said that further tightening of monetary policy may be required, but that it would be gradual.
The Australian market was the worst performer, with the ASX 200 down 0.8%. The Nikkei 225 was also down 0.5%, while the Hang Seng and Shanghai Composite were both down 0.4%.
Commodities
Crude oil futures traded indecisively within a tight range on Tuesday, holding on to the prior day's marginal gains. The market was supported by a lack of pertinent catalysts and a rangebound dollar. However, it was also weighed down by concerns about the impact of the Australian offshore union's industrial action on Chevron's LNG facilities.
Goldman Sachs said it still sees a potentially more aggressive OPEC+ price target as a key moderately bullish risk to its 12-month ahead Brent crude forecast of USD 93/bbl. The bank also no longer expects Saudi to announce a partial unwind of its 1mln bpd production cut.
Spot gold was contained by a lack of pertinent catalysts and alongside a rangebound dollar. However, the precious metal was supported by concerns about the global economic outlook and the ongoing war in Ukraine.
Copper futures remained subdued amid weaker-than-expected Chinese data and property-related woes. The metal was also weighed down by concerns about the impact of the global economic slowdown on demand.
Looking ahead, key economic data releases include Spanish, Italian, French, Eurozone and UK PMIs, US IBD/TIPP and Durable Goods, speeches from ECB's Lagarde, Schnabel and de Guindos, and supply data from Germany.
Here are some of the changes I made to the text:
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team