Futures on the Euro Stoxx 50 rose 0.7%, while in the United States, futures remained relatively static, with futures listed on the S&P 500 and Nasdaq 100 remaining unchanged. Nikkei futures rose by 0.3%, while Hong Kong’s Hang Seng slumped by 1.6%. The Shanghai Composite edged 0.2% higher.

Gold rose by 0.7% to hit a record value of $2,389.34 an ounce. As supply uncertainty rises due to Middle East tensions, with West Texas Intermediate crude rising by 0.8% to $85.69 per barrel. In cryptocurrencies, Bitcoin rose 0.6% to $70,940.49 while Ether was up 0.5% to $3,543.65.

The post European Stocks Rises as Gold Hits Fresh Record appeared first on theprimarymarket.com.

Despite a poor start to the year, China’s retail sales and industrial production rose in December from a year ago, when a Covid-19 outbreak disrupted factory activities. On Friday, figures showed that China’s consumer prices fell in December for a third consecutive month; the country’s longest deflation streak since 2009.

Going into 2024, analysts are expecting China’s economic recovery to slow down. “The domestic demand recovery will be slow and bumpy as targeted stimulus measures trickle through to investment sectors and the property recovery proceeds at a snail-like pace,” Duncan Wrigley, chief China economist at Pantheon Macroeconomics commented.

The post China Expected to Meet Economic Growth Goals for 2023 appeared first on theprimarymarket.com.

In Europe, the Stoxx 600 index edged 0.2% higher, while in Asia, the MSCI Asia Pacific Index fell 0.6%. This came after Chinese President Xi Jinping made a rare acknowledgment that numerous large companies in the country endured a turbulent year of trading in 2023. Also placing pressure on the Chinese economy is the cancellation of US-bound shipments by semiconductor manufacturing equipment supplier ASML Holding NV, at the request of US President Joe Biden.

Elsewhere, yields on U.S. and German bonds rose higher by more than five basis points each as markets boosted their bets on the Federal Reserve introducing less than 150 basis points of interest rate cuts over the course of 2024.

The post Futures Stagnant as New Year of Trading Kicks Off appeared first on theprimarymarket.com.

“The BOJ stance encouraged speculators to sell the yen, and there’s relief that yields in Japan aren’t likely to to to jump higher,” observed Lee Hardman, a strategist at MUFG Bank Ltd. Hardman added that

Japan’s Nikkei 225 equity index surged to a two-week high, while Europe’s Stoxx 600 index gained 0.3%. The MSCI Asia Pacific Index remained relatively unchanged. The BOJ’s contentment with keeping rates unchanged echoes the tones of the Federal Reserve and the European Central Bank, however, all three are expected to introduce rate cuts at various points throughout the next year.

The post Asian and European Stocks Rise as Japanese Interest Rates Remain Unchanged appeared first on theprimarymarket.com.

10-year US Treasury Yields rose for a fourth consecutive day, edging closer to the 5% mark for the first time since 2007. This has prompted Federal Reserve officials to insist on backing a strict fiscal policy.  Federal Reserve Bank of New York President John Williams explained that interest rates are required to remain steep “for some time” in order to lower inflation to the central bank’s 2% target.

“Despite improving inflation numbers, there is a conflict as Treasury yields are rising, leading to uncertainty about the future of monetary policy,” economists at Rand Merchant Bank in Johannesburg, South Africa explained.

The post Stocks Fall Amid Weak Earnings and Rising Yields appeared first on theprimarymarket.com.

The PMI, which surveyed a range of major manufacturers, climbed to 50.2 in September from 49.7 in August and beat a forecast of 50. The 50-point mark is what separates manufacturing activity contraction from expansion. China’s non-manufacturing PMI, which covers the service sector activity and construction, rose from 51.0 in August to 51.7 in September.

Zhou Hao, chief economist at Guotai Junan International, observed that “The manufacturing PMI, plus the good industrial profit figures, suggest that the economy is gradually bottoming out.” 

The post Chinese Economy Stabilizes Amid Rising Factory Activity appeared first on theprimarymarket.com.

With concerns about the struggling property sector as well as overall economic growth persisting, global funds have sold over 27 billion yuan ($3.8 billion) so far this month via trading links with Hong Kong. This shows a persistent decline since the 90 billion yuan selloff in August. Ultimately, this shows the ineffectiveness of Chinese authorities’ efforts to boost capital markets and restore confidence in investors.

Wu Xianfeng, a fund manager at Shenzhen Longteng Assets Management Co. believes that the property market fallout and the hawkish monetary approach of the US Federal Reserve play a role in dampening investor sentiment. “One way we might be able to see a turnaround is if the state starts a new round of buying with a market stability fund,” Xianfeng suggested.

The post China Stocks Hit 10-Month Low as Market Pessimism Persists appeared first on theprimarymarket.com.

Following years of battles with overseas investors, this deal sees Toshiba get placed in local hands. The JIP-led consortium’s buyout has valued Toshiba at 2 trillion yen ($13.5 billion). While some shareholders were dissatisfied with the bid, analyst Travis Lundy of Quiddity Advisors acknowledged that it has helped the electronics manufacturer to escape a deadlock.

“Activist shareholders and Toshiba were stuck with each other for years. This takeover allows both sides to escape their mutual bearhug,” Lundy observed. Toshiba is set to be de-listed from the Tokyo Stock Exchange in December.

The post Toshiba Going Private After $14 Billion Takeover appeared first on theprimarymarket.com.

Hong Kong’s Hang Seng index declined by 0.56% while China’s benchmark CSI300 Index fell by 0.59% with China’s trade data for August set to be released on Thursday. Analysts are expecting exports and imports to continue declining, albeit at a slowing pace. Japan’s Nikkei 225, in contrast, grew by 0.52%, with energy shares performing amid a slide in crude oil prices.

The U.S. dollar rose to almost a six-month high against a basket of major currencies, with the dollar index standing at 104.768. The euro slid 0.61% against the dollar to $1.0731, while the sterling fell 0.41% against the greenback to $1.262.

The post Asian Stocks Slip, Dollar Strengthens Amid Growth Concerns appeared first on theprimarymarket.com.

Among the measures being implemented by the government is a decrease in the minimum down payment required as well as eased mortgage restrictions for some homebuyers in China’s megacities. According to several local media reports, home sales surged following the new support measures.

“We believe this will trigger a short-term rebound in sales among all tier-1 cities, as this unlocks some previously suppressed upgrade demand,” JPMorgan Chase & Co. analysts wrote in a note with regard to the new incentives. The analysts added that this measure to stabilize the market is the first step to preventing further declines.

The post Property Leads China Stock Rally appeared first on theprimarymarket.com.

Futures on the Euro Stoxx 50 rose 0.7%, while in the United States, futures remained relatively static, with futures listed on the S&P 500 and Nasdaq 100 remaining unchanged. Nikkei futures rose by 0.3%, while Hong Kong’s Hang Seng slumped by 1.6%. The Shanghai Composite edged 0.2% higher.

Gold rose by 0.7% to hit a record value of $2,389.34 an ounce. As supply uncertainty rises due to Middle East tensions, with West Texas Intermediate crude rising by 0.8% to $85.69 per barrel. In cryptocurrencies, Bitcoin rose 0.6% to $70,940.49 while Ether was up 0.5% to $3,543.65.

The post European Stocks Rises as Gold Hits Fresh Record appeared first on theprimarymarket.com.

Despite a poor start to the year, China’s retail sales and industrial production rose in December from a year ago, when a Covid-19 outbreak disrupted factory activities. On Friday, figures showed that China’s consumer prices fell in December for a third consecutive month; the country’s longest deflation streak since 2009.

Going into 2024, analysts are expecting China’s economic recovery to slow down. “The domestic demand recovery will be slow and bumpy as targeted stimulus measures trickle through to investment sectors and the property recovery proceeds at a snail-like pace,” Duncan Wrigley, chief China economist at Pantheon Macroeconomics commented.

The post China Expected to Meet Economic Growth Goals for 2023 appeared first on theprimarymarket.com.

In Europe, the Stoxx 600 index edged 0.2% higher, while in Asia, the MSCI Asia Pacific Index fell 0.6%. This came after Chinese President Xi Jinping made a rare acknowledgment that numerous large companies in the country endured a turbulent year of trading in 2023. Also placing pressure on the Chinese economy is the cancellation of US-bound shipments by semiconductor manufacturing equipment supplier ASML Holding NV, at the request of US President Joe Biden.

Elsewhere, yields on U.S. and German bonds rose higher by more than five basis points each as markets boosted their bets on the Federal Reserve introducing less than 150 basis points of interest rate cuts over the course of 2024.

The post Futures Stagnant as New Year of Trading Kicks Off appeared first on theprimarymarket.com.

“The BOJ stance encouraged speculators to sell the yen, and there’s relief that yields in Japan aren’t likely to to to jump higher,” observed Lee Hardman, a strategist at MUFG Bank Ltd. Hardman added that

Japan’s Nikkei 225 equity index surged to a two-week high, while Europe’s Stoxx 600 index gained 0.3%. The MSCI Asia Pacific Index remained relatively unchanged. The BOJ’s contentment with keeping rates unchanged echoes the tones of the Federal Reserve and the European Central Bank, however, all three are expected to introduce rate cuts at various points throughout the next year.

The post Asian and European Stocks Rise as Japanese Interest Rates Remain Unchanged appeared first on theprimarymarket.com.

10-year US Treasury Yields rose for a fourth consecutive day, edging closer to the 5% mark for the first time since 2007. This has prompted Federal Reserve officials to insist on backing a strict fiscal policy.  Federal Reserve Bank of New York President John Williams explained that interest rates are required to remain steep “for some time” in order to lower inflation to the central bank’s 2% target.

“Despite improving inflation numbers, there is a conflict as Treasury yields are rising, leading to uncertainty about the future of monetary policy,” economists at Rand Merchant Bank in Johannesburg, South Africa explained.

The post Stocks Fall Amid Weak Earnings and Rising Yields appeared first on theprimarymarket.com.

The PMI, which surveyed a range of major manufacturers, climbed to 50.2 in September from 49.7 in August and beat a forecast of 50. The 50-point mark is what separates manufacturing activity contraction from expansion. China’s non-manufacturing PMI, which covers the service sector activity and construction, rose from 51.0 in August to 51.7 in September.

Zhou Hao, chief economist at Guotai Junan International, observed that “The manufacturing PMI, plus the good industrial profit figures, suggest that the economy is gradually bottoming out.” 

The post Chinese Economy Stabilizes Amid Rising Factory Activity appeared first on theprimarymarket.com.

With concerns about the struggling property sector as well as overall economic growth persisting, global funds have sold over 27 billion yuan ($3.8 billion) so far this month via trading links with Hong Kong. This shows a persistent decline since the 90 billion yuan selloff in August. Ultimately, this shows the ineffectiveness of Chinese authorities’ efforts to boost capital markets and restore confidence in investors.

Wu Xianfeng, a fund manager at Shenzhen Longteng Assets Management Co. believes that the property market fallout and the hawkish monetary approach of the US Federal Reserve play a role in dampening investor sentiment. “One way we might be able to see a turnaround is if the state starts a new round of buying with a market stability fund,” Xianfeng suggested.

The post China Stocks Hit 10-Month Low as Market Pessimism Persists appeared first on theprimarymarket.com.

Following years of battles with overseas investors, this deal sees Toshiba get placed in local hands. The JIP-led consortium’s buyout has valued Toshiba at 2 trillion yen ($13.5 billion). While some shareholders were dissatisfied with the bid, analyst Travis Lundy of Quiddity Advisors acknowledged that it has helped the electronics manufacturer to escape a deadlock.

“Activist shareholders and Toshiba were stuck with each other for years. This takeover allows both sides to escape their mutual bearhug,” Lundy observed. Toshiba is set to be de-listed from the Tokyo Stock Exchange in December.

The post Toshiba Going Private After $14 Billion Takeover appeared first on theprimarymarket.com.

Hong Kong’s Hang Seng index declined by 0.56% while China’s benchmark CSI300 Index fell by 0.59% with China’s trade data for August set to be released on Thursday. Analysts are expecting exports and imports to continue declining, albeit at a slowing pace. Japan’s Nikkei 225, in contrast, grew by 0.52%, with energy shares performing amid a slide in crude oil prices.

The U.S. dollar rose to almost a six-month high against a basket of major currencies, with the dollar index standing at 104.768. The euro slid 0.61% against the dollar to $1.0731, while the sterling fell 0.41% against the greenback to $1.262.

The post Asian Stocks Slip, Dollar Strengthens Amid Growth Concerns appeared first on theprimarymarket.com.

Among the measures being implemented by the government is a decrease in the minimum down payment required as well as eased mortgage restrictions for some homebuyers in China’s megacities. According to several local media reports, home sales surged following the new support measures.

“We believe this will trigger a short-term rebound in sales among all tier-1 cities, as this unlocks some previously suppressed upgrade demand,” JPMorgan Chase & Co. analysts wrote in a note with regard to the new incentives. The analysts added that this measure to stabilize the market is the first step to preventing further declines.

The post Property Leads China Stock Rally appeared first on theprimarymarket.com.