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5:49 AM · 6 October 2023

Morning Wrap (06.10.2023)

  • US indices finished yesterday’s trading session slightly lower after the most recent macro data showed weekly unemployment claims and challenger reports remaining around historic lows. 

  • However both US500 and US100 recovered from the worst of this week's slump and now hover around critical support levels preparing for today's NFP labor data.

  • Indices from Asia-Pacific traded mostly higher today. Nikkei gained 0.21%, S&P/ASX 200 moved 0.35% higher and Chinese indices gained more than 1,0%.

  • The yield on the 10-year US Treasury note fell to 4.71% after reaching a 16-year high of roughly 4.90% this week. The 30-year, which had recently reached 5%, climbed to 4.9% in Thursday's session.

  • Japan's cash earnings grew by 1.1% this year, slightly below the expected growth of 1.5% and last year's 1.3% growth.

  • Yearly household spending in Japan decreased by 2.5%. This is better than the expected decrease of 3.9%, and an improvement from last year's 5.0% decline.

  • Monthly household spending in Japan increased by 3.9%, recovering from a 2.7% decrease in the previous period.

  • Japan's leading indicator improved, registering a 1.3 increase from a previous decrease of 1.2.

  • Japan's Finance Minister, Suzuki, stated that various factors determine if currency movements are too drastic.

  • India's interest rate remained steady at 6.5%, matching expectations and slightly adjusting from the previously stated 6.50%.

  • RBI's (the Reserve Bank of India) Governor Das remarked that top global banks indicate that the cycle of rate hikes might be reaching its peak. He suggests that the strict monetary policy could last longer than previously thought.

  • Governor Das also noted that the global economy is facing a slowdown due to strict financial conditions and ongoing geopolitical issues. Governor Das expects inflation to decrease in the near future.

The Japanese Nikkei 225 index ticked higher by 0.21% today and rebounded from a critical support level after over two weeks of declines. Source: xStation 5

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