Global Markets - KASB

Stocks Climb on Weaker Dollar and China Data: Inflation the Main Focus

The Japanese Yen is the best-performing currency due to the Bank of Japan fueling speculation of a rate alternation. Additionally, over the past week, the Japanese Yen’s performance has improved due to investors fearing the Japanese Federal Government may intervene again as the Yen declined. The Japanese Yen opened on a bullish market gap during this morning’s Asian session against all currencies. For example, the US Dollar opened on a price gap against the Yen measuring a whopping 0.55%.

In addition to the Yen, the global stock market performed well during this morning’s Asian and Futures session. The positive price action amongst stocks is due to the Dollar weakness and the positive Chinese Inflation. The Chinese Consumer Price Index is a relief for investors due to the high risk of deflation. Deflation is known to significantly damage economic growth and increase the risk of a recession. The CPI rose 0.1% in August, which is higher than -0.3% in July. The global stock market’s reaction has been positive as the CPI data lowers the risk of deflation but continues to show signs the government needs to push on with fiscal stimulus. Fiscal stimulus is again usually deemed as positive for the stock market.

Global Weekly Recap

With Brent Crude hovering below the $90 mark, the US Dollar regained momentum following robust domestic services sector data. Meanwhile, Apple faced stock pressures due to China’s tightening grip on iPhone usage among state employees.

Dive into our weekly newsletter to unravel behind these market movements and more ⬇️

Top Economic Events of This Week | September 4 – September 8 – 2023

Gear up for a whirlwind of economic revelations this week, each brimming with the potential to send ripples across the global financial arena. With Europe’s pulse check via its quarterly GDP figures and a much-anticipated speech by FOMC Member Williams, the path forward for monetary policies on both sides of the Atlantic remains intriguingly uncertain. Combined, these revelations may just sway the pendulum of key decision-makers, influencing strategies and stakeholder sentiments alike.

Dive into our weekly roundup for a deep dive into these pivotal events and their potential implications.

Dollar Dominates: PCE Price Index & NFP Data in Spotlight

Investors are happy that the Core PCE Price Index at 0.2% is lower than the 0.4% 12-month average. The market’s reaction was seen mainly amongst US Dollar currency pairs, Gold and US Indices. The US Dollar Index, which is the value of the Dollar against six currencies, rose in value during the first two sessions but fell after the PCE Price Index. However, investors should note that the currency ended the day higher than the open market. The index remains unchanged this morning, but volatility will likely increase after this afternoon’s NFP data.

The stock market, on the other hand also saw prices increase after the PCE Price Index, however, sold instruments struggled to hold onto gains. The leading three US-based indices rose to new weekly highs. However, the S&P 500 and Dow Jones fell to a lower price in the second half of the session. The NASDAQ also lost momentum in the second half of the US Session but rose by 0.25% by the end. However, NASDAQ investors will now concentrate on the earnings report from Broadcom, released this morning, and this afternoon’s Employment Data.

Top Economic Events | August 28 – September 1 – 2023

This week, investors will closely monitor a series of crucial economic reports set to be released. These, along with other upcoming reports in the following weeks, will play a pivotal role in influencing the Federal Reserve’s decision on monetary policy during their September rate meeting. Are you set? US: August’s Consumer Confidence Index On Tuesday,… Continue reading Top Economic Events | August 28 – September 1 – 2023