Morning wrap (08.08.2023)

• Indices from Asia-Pacific traded mixed on Tuesday - Nikkei and Nifty 50 gained while Kospi, S&P/ASX 200 and indices from China traded lower.

• The S&P 500 halted its four-day decline. Dow Jones Industrial Average saw its biggest gains in over seven weeks.

• Berkshire Hathaway's earnings surpassed expectations. Company shares BRKB.US reach new all time high at the market close after rising 3.56% to $362.59.

• Amazon to meet with the Federal Trade Commission to discuss potential antitrust issues. Tesla's stock price declined following the unexpected resignation of its CFO. Apple experienced its longest losing streak this year.

• Fed Governor Michelle Bowman suggests more rate hikes are likely necessary. Contrary, New York Fed President John Williams believes restrictive policy should persist but sees potential for rate cuts if inflation slows in 2024.

•  A majority of investors anticipate a US recession before 2024, shifting preference towards long-term US Treasuries. About two-thirds from a recent Markets Live Pulse survey foresee economic contraction by the end of next year.

• Biden will treat certain requirements of US-Tawian free trade deal law as non-binding if Tawian infringe on ability to negotiate with trade partners

• Japanese Data:

  • Cash earnings increased by 2.3% YoY, falling short of the 3% forecast and down from the previous 2.5%.
  • Household spending declined by 4.2% YoY, more than the forecasted -3.8% and slightly more than the previous -4.0%.
  • The current account stands at 1508.8B Yen, slightly above the forecasted 1500B but below the previous 1,862.4B.

• Australian Data:

  • Consumer sentiment decreased by 0.4%, a drop from the previous 2.7%.
  • Business confidence rose to 2, up from the previous score of 0.

• Chinese Data:

  • Yearly exports decreased by 14.5%, more than the predicted -13.2% decline and a drop from the previous -12.4%.
  • Yearly imports saw a decline of 12.4%, steeper than the forecasted -5.6% and previous -6.8%.
  • The trade balance is at 80.6B USD, surpassing the forecast of 70B and the previous 70.62B.

• The dollar showed strength across many major currency pairs, with USDJPY rising the most, up by 0.6% to 143.35, marking the day's high.

• Cryptocurrencies are trading slightly higher with Bitcoin adding 0.16%, Ethereum jumping 0.33% and Litecoin moving 0.18% higher

• Precious metals trade mixed - gold drops 0.18%, silver is up 0.17%, platinum jumps 0.10% and palladium rallies 0.4%

USDJPY - Today, the USD is one of the better-performing currencies ahead of the CPI publication in the USA and following comments from FED members. USDJPY rises by 0.60% to the level of 143.3. Source: xStation 5.