02/06/2023
Today’s Announcements & News
Asia
On Thursday, the Asia-Pacific markets mostly saw gains following the passage of the bill to raise the U.S. debt ceiling in the House of Representatives. The bill now moves to the Senate just days before the default deadline. The passage of the bill brought a dramatic conclusion to weeks of negotiations between the White House and Republican House Speaker Kevin McCarthy.
In Japan, the Nikkei 225 index experienced a 0.84% gain, closing at 31,148.01. The Topix index also rose by 0.88%, ending at 2,149.29, after retreating from the 31,000 mark on the previous day.
Australia’s S&P/ASX 200 index rebounded from a one-month low, gaining 0.27% to finish at 7,110.8.
South Korean markets showed mixed results, with the Kospi index down by 0.31% at 2,569.17, being the only major Asian benchmark index in the red on Thursday. On the other hand, the Kosdaq index increased by 0.8% and closed at 863.78, reaching its highest level in about six weeks.
Hong Kong’s Hang Seng index rebounded after entering bear market territory, experiencing a fractional rise.
Mainland Chinese markets also saw gains, with the Shanghai Composite index closing slightly up at 3,204.63.
The Shenzhen Component index rose by 0.39% to end at 10,835.9, showing a slight rebound from its lowest level since November 2022.
United States
In overnight trading, stock futures edged higher as investors awaited the release of the May jobs report on Friday.
Futures linked to the Dow Jones Industrial Average showed a gain of 42 points or 0.13%, while S&P 500 futures increased by 0.1%. Nasdaq-100 futures also rose by 0.13%.
After the market closed, Lululemon shares surged 13% following strong results and an improved guidance. MongoDB saw a significant surge of 23% after hours due to an impressive forecast.
Stocks had a positive start to the new trading month, with the S&P 500 and Nasdaq Composite rising by 0.99% and 1.28% respectively, reaching their highest levels since August. The Dow Jones Industrial Average also gained 153.3 points or 0.47%.
Concerns over the debt ceiling eased on Thursday as the House passed the Fiscal Responsibility Act with a vote of 314-117, just days before the June 5 deadline set by U.S. Treasury Secretary Janet Yellen. Senate Majority Leader Chuck Schumer announced that the bill would be passed on Thursday night.
Earlier in the week, there were fears among investors that the U.S. might default on its obligations if lawmakers failed to reach an agreement, causing some market uncertainty.
Commodity
On Thursday, gold experienced a 1% gain, reaching a more than one-week high, as the dollar weakened following disappointing U.S. economic data, which led to expectations that the Federal Reserve may not proceed with an interest rate hike at its June policy meeting.
Spot gold rose by 0.76% to $1,977.19 per ounce, reaching its highest level since May 24 at $1,981.09 earlier in the day. U.S. gold futures also increased by 0.65% to $1,994.90.
The U.S. manufacturing sector continued to contract for the seventh consecutive month in May, accompanied by a decline in new orders. Additionally, the number of new jobless claims in the United States saw a modest increase last week.
The dollar slipped, making gold more affordable for holders of other currencies, while 10-year Treasury yields dropped to a two-week low, reducing the attractiveness of zero-interest-bearing gold.
Meanwhile, oil prices climbed on Thursday, experiencing the largest increase in two weeks ahead of an OPEC+ meeting scheduled for Sunday. The passage of a bill by the House of Representatives to suspend the U.S. debt ceiling also helped offset the impact of rising inventories in the country.
U.S. West Texas Intermediate crude (WTI) settled at $70.10 a barrel, rising by $2.01 or 3%, marking the biggest daily gain since May 5.
The above analysis is only for the views of market researchers and is for reference only and is not regarded as a specific investment suggestion.
