Oct 18, 2023: Better-than-expected Chinese growth data on Wednesday boosted Asian currencies, driving the yuan to a one-week high and putting a dampener on the U.S. dollar. A blast at a Gaza hospital, however, kept moves modest and traders on edge at the prospect of a widening conflict. U.S. President Joe Biden is due to visit Israel on Wednesday. Official data showed China’s economy grew 1.3% in the third quarter, accelerating from 0.5% in the previous quarter and topping market forecasts for an increase of 1%. Industrial output rose and unemployment fell. China’s yuan hit a one-week high of 7.2905…
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Oct 18, 2023: An escalation of the Israel-Gaza war into a broader conflict could deliver another shock to world growth and halt disinflationary forces in their tracks. Market reaction has been modest so far, but that could change. “Whether this conflict remains limited to a confrontation between Hamas and Israel or escalates into a broader regional conflict involving Iran’s proxy armed groups, notably Hezbollah, will have significant implications,” said Hamza Meddeb, director of the political economy programme at the Malcolm H. Kerr Carnegie Middle East Center in Beirut. “Such an escalation could lead to increased oil prices, concerns about oil…
Oct 17, 2023: Asian stocks made some cautious gains on Tuesday, with investors choosing to focus on corporate earnings prospects and the resilience of the U.S. economy ahead of tensions in the Middle East. MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.58%. Tokyo’s Nikkei rose 0.89%. Overnight the S&P 500 had climbed 1%, while oil prices and the U.S. dollar had fallen. A host of “favorable” signs from the strength of the U.S. consumer, economic growth, and interest rates supporting bank profits, gave reasons for hope, said Kerry Craig, a global market strategist at J.P. Morgan Asset Management.…
Oct 17, 2023: Oil prices steadied on Tuesday after sliding more than $1 on Monday amid hopes the U.S. would ease sanctions on producer Venezuela and as Washington stepped up efforts to prevent an escalation of the war between Israel and Hamas. Brent crude futures were up 29 cents at $89.94 a barrel, while U.S. West Texas Intermediate crude (WTI) was up 20 cents at $86.86 a barrel as of 0808 GMT. Venezuela’s government and opposition are set to resume long-suspended talks on Tuesday which President Nicolas Maduro said would benefit the 2024 election, a move that could lead to…
Oct 17, 2023: The U.S. dollar swayed in a tight range on Tuesday as traders took stock of developments in the Middle East and braced for speeches this week by central bank officials, including Federal Reserve Chair Powell, to gauge the policy outlook. The yen was pinned close to the key 150 per dollar level, keeping investors on edge for any signs of intervention by the Japanese authorities. The yen last fetched 149.62 per dollar, having slipped to 150.17 on Oct. 3, the weakest in a year, before getting some relief in a brief rally. Japan’s top financial diplomat Masato…
Oct 17, 2023: China has instructed state-owned banks to roll over existing local government debt with longer-term loans at lower interest rates, two sources with knowledge of the matter said, as part of Beijing’s efforts to reduce local debt risks in a faltering economy. Debt-laden municipalities represent a major risk to the world’s second-largest economy and possibly its financial stability, economists say, amid a deepening property crisis, years of over-investment in infrastructure and soaring COVID-19 costs. Local government debt reached 92 trillion yuan, or 76% of economic output in 2022, up from 62.2% in 2019. Part of it is debt…
Oct 17, 2023: China’s Gemdale saw its stocks and bonds plunge on Tuesday after the resignation of its chairman, as investors took no chances amid the debt crisis in the key real estate sector. Ling Ke, 64, had resigned due to health reasons, Shanghai-listed Gemdale announced on Monday evening, adding that he would be replaced by company president Huang Juncan. It did not elaborate on the health reasons. Chinese media outlet Yicai on Tuesday quoted a separate company statement as saying that Ling’s resignation was a normal transfer of management responsibilities and would not have a big impact on the…
Oct 17, 2023: Growth in British workers’ regular pay – which is being watched closely by the Bank of England – slowed from a previous record high and job vacancies also declined, official figures showed on Tuesday, in a sign that the labour market is losing momentum. British average earnings, excluding bonuses, were 7.8% higher than a year earlier during the three months to August, down from an upwardly revised 7.9% in the three months to July, the first such fall since January. Average earnings are being monitored by the Bank of England as it considers whether to resume raising…
Oct 16, 2023: Most Asian stocks retreated on Monday as concerns over the Israel-Hamas war kept risk sentiment weak, with Japan’s Nikkei index leading losses amid jitters before key inflation data this week. Markets remained on edge over a spillover in the Israel-Hamas conflict into the broader Middle East region, as Israel prepared for a ground assault on the Gaza strip. But U.S. Secretary of State Antonty Blinken said that Arab states did not want a spillover of the conflict. Still, risk appetite remained weak, also coming under pressure from fears of rising U.S. interest rates, following a stronger-than-expected inflation…
Oct 16, 2023: Gold prices fell on Monday, reversing course after increased safe haven demand spurred a series of strong gains in the yellow metal, with focus remaining on any potential spillover from the Israel-Hamas war. The yellow metal saw a touch of profit taking after jumping over 5% in the prior week, as the onset of the Israel-Hamas war sent investors dashing for safe haven assets. Markets were now watching to see whether the Israel-Hamas conflict would spill over into the Middle East region, as Israel prepares a ground offensive in the Gaza strip. Spot gold fell 0.7% to…
