27/07/2023
Today’s Announcements & News
Asia
As the U.S. Federal Reserve’s rate decision approaches, Asia-Pacific markets were mostly down. Investors are closely watching for the Fed’s decision on interest rates, which is expected to be the 11th increase since March 2022.
In Australia, the S&P/ASX 200 performed well, climbing 0.78% and reaching its highest point since February 2023. However, Australia’s inflation rate on an annual basis grew at a slower pace of 6% in the June quarter compared to 7% in the first quarter.
On the other hand, South Korea’s Kospi led the losses in the region, falling as much as 2% due to declines in tech and consumer services stocks. The index closed 1.67% lower, and the Kosdaq experienced a larger loss of 4.18%.
In Japan, the Nikkei 225 was down marginally, extending its losses from the previous day and closing at 32,668.34, while the Topix also experienced a slight decline of 0.1%.
Hong Kong’s Hang Seng index retreated from Tuesday’s gains and inched down 0.31%, while mainland Chinese markets also saw losses. The Shanghai Composite was down 0.26%, and the Shenzhen Component lost 0.48%.
Overall, market sentiment in the Asia-Pacific region is cautious as investors await the Federal Reserve’s decision on interest rates and its potential impact on global markets.
US
After the Federal Reserve’s quarter percentage point hike, S&P 500 futures traded flat in overnight trading. Dow Jones Industrial Average futures lost 48 points (0.13%), while Nasdaq-100 futures rose 0.2%.
In extended trading, Meta Platforms shares surged nearly 7% on better-than-expected results and strong guidance, while Chipotle Mexican Grill shares plummeted about 9% as sales fell short of estimates.
During regular trading on Wednesday, the Dow Jones Industrial Average rose for a 13th consecutive session, gaining 82.05 points (0.23%), marking its longest winning streak since 1987. However, the S&P 500 dipped 0.02%, and the Nasdaq Composite lost 0.12%.
The Federal Reserve’s decision resulted in interest rates reaching their highest level since 2001. Federal Reserve Chairman Jerome Powell’s remarks suggested that the central bank may hold rates steady at these levels and that the Federal Open Market Committee will continue to be data-dependent. The central bank is scheduled to meet again in September after reviewing new inflation and employment data.
Commodity
On Wednesday, oil prices experienced a decline of about 1% as U.S. crude inventories fell less than anticipated, and the Federal Reserve implemented a quarter percentage point interest rate hike.
Brent crude futures closed down 72 cents (0.9%), settling at $82.92 a barrel, while U.S. West Texas Intermediate (WTI) crude settled at $78.78, down 85 cents (1.1%). Both benchmarks had previously dropped by over $1 during the session, despite hitting three-month highs on Tuesday.
Meanwhile, gold prices continued to rise, supported by a weaker dollar and bond yields after the U.S. Federal Reserve carried out the widely expected interest rate hike. U.S. gold futures settled 0.5% higher at $1,974.90.
The Federal Reserve’s quarter percentage point interest rate hike on Wednesday marked the 11th such increase in the past 12 policy meetings, and the accompanying policy statement indicated the possibility of another hike in the future.
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.
