Market Highlights π‘ - 5 September 2024
Due to concerns about a U.S. economic recession and the withdrawal of major tech companies, global markets fell as investors fled risk assets.
πΊπΈ S&P 500 Index: -0.16% π $S&P 500(.SPX)$
πΊπΈ Nasdaq Index: -0.30% π $NASDAQ(.IXIC)$
πͺπΊ Stoxx 600 Index: -0.97% π
π―π΅ Nikkei 225 Index: -4.24% π
ππ° Hang Seng Index: -1.10% π
π¨π³ CSI 300 Index: -0.65% π
Wall Street fell, with the S&P 500 Index and Nasdaq Composite Index dropping -0.2% and -0.3%, respectively, due to disappointing job vacancies and investors preparing for volatility.
U.S. July JOLTS job openings fell to 7.67 million (expected 8.09 million), slightly below June's report of 7.91 million openings, indicating a softening labor market and increasing concerns about the health of the U.S. economy.
EU HCOB Services PMI rose from 51.9 in July to 52.9 in August (expected 51.9), benefiting from an increase in new business inflows.
Japan's August au Jibun Bank Service PMI remained at 53.7, with overseas sales growth supporting the index despite a bleak global outlook.
APAC markets worsened, with the Hong Kong Hang Seng Index and Shanghai CSI 300 Index falling -1.1% and -0.7%, respectively, as investors shifted to a risk-off mode amid weak U.S. manufacturing data. Meanwhile, the Nikkei 225 Index dropped -4.2% due to the Bank of Japan's hawkish stance on monetary policy, which strengthened the yen and posed risks to global arbitrage trading.
Despite the peak summer travel season, the August Caixin China Composite Services PMI slowed from 52.1 last month to 51.6 (expected 52.2), prompting some businesses to cut jobs due to rising cost concerns.
π‘ Upcoming Events: π‘
On Thursday, the U.S. ISM and S&P Global Services PMI final values, initial jobless claims, EU retail sales month-on-month will be announced.
By the end of the week, on Friday and Saturday, we will see the release of U.S. unemployment rate, nonfarm payrolls, EU Germany industrial production month-on-month, GDP quarterly revision, and China export year-on-year figures.
π‘ Things to Know Today: π‘
1. The union representing dock workers on the U.S. East Coast and Gulf Coast has threatened to strike if wage demands are not met by the September 30 deadline. This could disrupt major ports and have significant repercussions on global trade and the U.S. economy.
Coast
2. C3.ai's $C3.ai, Inc.(AI)$
C3.AI
3. China is considering a two-step reduction of mortgage rates by up to 80 basis points to boost household consumption and support the struggling real estate market while attempting to minimize the impact on bank profitability.
4. Alibaba $Alibaba(09988)$ $Alibaba(BABA)$ will soon allow Tencent's $TENCENT(00700)$ WeChat Pay to be used on its e-commerce platforms Taobao and Tmall. This marks a significant shift from its previously closed ecosystem due to Beijing's antitrust actions and is expected to attract more buyers, particularly from underdeveloped regions.
WeChat Pay
β Key Points:
Concerns about macroeconomic instability and the sustainability of large AI expenditures are driving a sharp decline in risk assets. As the market digests new data and reassesses risks, investors should brace for continued volatility.
@Daily_Discussion @TigerStars @Tiger_comments @CaptainTiger @MillionaireTiger @TigerGPT
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Based on the market highlights on September 5, 2024, here are some key points:
Global markets fell: Concerns about a U.S. economic recession and the withdrawal of major tech companies led to a decline in global markets as investors sought safer assets.
U.S. markets: The S&P 500 Index and Nasdaq Composite Index both dropped, with the S&P 500 down 0.2% and the Nasdaq down 0.3%. Disappointing job openings data and anticipation of market volatility contributed to the decline.
EU HCOB Services PMI: The EU HCOB Services PMI increased from 51.9 in July to 52.9 in August, surpassing expectations. This improvement was driven by an increase in new business inflows.
Japan's au Jibun Bank Service PMI: Japan's au Jibun Bank Service PMI remained at 53.7 in August. Despite a challenging global outlook, the index was supported by growth in overseas sales.
APAC markets: The Hong Kong Hang Seng Index and Shanghai CSI 300 Index both experienced declines, with the Hang Seng down 1.1% and the CSI 300 down 0.7%.
C3.ai stock performance: C3.ai, Inc. (AI) saw its stock fall by 18% in after-hours trading after reporting Q1 2024 subscription revenue of $73.5 million, which was below analyst expectations. The company's guidance for the next quarter also fell short of expectations.
China's mortgage rate reduction: China is considering a two-step reduction of mortgage rates by up to 80 basis points to stimulate household consumption and support the struggling real estate market. The goal is to minimize the impact on bank profitability.
Alibaba's partnership with WeChat Pay: Alibaba (09988) will soon allow Tencent's WeChat Pay to be used on its e-commerce platforms Taobao and Tmall. This decision marks a significant shift from Alibaba's previously closed ecosystem due to antitrust actions and is expected to attract more buyers, especially from underdeveloped regions.
Investors should be prepared for continued volatility as the market digests new data and reevaluates risks. It is important to stay updated on market developments and consider the potential impact on investment portfolios.
*Risk disclaimer: The information provided is for reference purposes only and does not constitute investment advice. Investing in financial markets involves risks, and individuals should carefully consider their investment objectives and risk tolerance before making any investment decisions.