Wednesday, 4 October 2023

We are shifting our daily news to Gutzy.Asia Support us there!

Markets mostly rise on rate hopes but China fears weigh

HONG KONG, CHINA — Markets mostly rose Thursday on signs that more than a year of interest rate hikes around the world was subduing inflation, giving central banks room to take a softer approach to monetary policy.

Investors were also keeping an eye on Beijing, hoping for fresh help for the world’s number-two economy following more weak data that has weighed on sentiment.

Another broadly strong round of corporate earnings out of Wall Street provided support, meanwhile, though disappointing reports from Netflix and Tesla tempered the excitement.

The mood across trading floors has been generally positive of late, with last week’s news that US inflation had slowed more than expected coming alongside healthy data suggesting a recession could also be avoided.

That was compounded by a surprisingly low UK inflation reading Wednesday.

The figures have fanned hopes that the long-running campaign of rate hikes was kicking in and policymakers in Washington and London could tap the brakes.

Comments from a top European Central Bank official this week indicated a similar outlook in Frankfurt.

The Fed is tipped to lift rates at its meeting next week, but expectations are that it will stop after that, though there is still debate about whether it will announce another later in the year.

“With inflation easing and odds for a soft landing rising, investors may adopt an ‘it could have been worse mood’, so perhaps it’s unlikely risk sentiment will drift too far askew,” said Stephen Innes at SPI Asset Management, “especially given the less hawkish implications the global inflation reset will have on central bank interest rates.”

After another positive end on Wall Street, which saw the Dow chalk up an eighth straight advance, Asia battled to take up the baton.

Hong Kong, Shanghai, Sydney, Seoul, Taipei, Manila, Jakarta and Wellington rose. However, Tokyo and Singapore dropped.

However, analysts remained cautious and warned the road ahead could still be bumpy for investors.

“The risk of recession has receded dramatically,” Neil Dutta, at Renaissance Macro Research, told Bloomberg Television.

“I think the markets are right to allocate a little bit more to the soft-landing story, but I think you can make a good case that maybe we’re getting a little bit over our skis here and we should probably put some more potential on the resurgence of the inflationary-boom scenario.”

A lot of the unease on trading floors is centred on China’s troubled economy, with the recovery from years of zero-Covid appearing to have shuddered to a halt, with the threat of deflation lingering.

And investors are growing anxious for Beijing to set measures to reinvigorate growth, with very little concrete coming out so far, apart from some small interest rate hikes and some pledges to aid the property sector.


Notify of
Inline Feedbacks
View all comments

Latest posts

Election surprises and certainties: Dissecting Tharman’s presidential win

In the 2023 Presidential Election, Mr. Tharman Shanmugaratnam secured a stunning 70.4% landslide victory, surprising many, including himself. Despite expectations that TKL would win the opposition votes, voters from both camps showed a preference for Tharman's charisma and perceived competency. As Singapore reflects on the outcome, questions arise about the election's fairness and the real implications of Tharman's dominant win.

Volunteer as a Polling and Counting Agent for Singapore’s 2023 Presidential Election

For the upcoming Singapore Presidential Election on 1st September, members of the civil society have spearheaded an initiative to strengthen our democratic fabric. We invite committed individuals to join us as Polling and Counting Agents, standing together for a transparent, fair, and just election. This vote counting exercise, organized by members of civil society, is not specifically in support of Mr Tan Kin Lian, a candidate in the upcoming Presidential Election. It's an exercise in active citizenry. Nonetheless, Mr Tan endorses this initiative, which hinges on his candidacy, championing transparency, and has given permission for the results to be shared publicly.

Reflections from the Centenary: The Legacy of LKY and Singapore’s Future

Gilbert Goh reflects on the LKY centenary event: an inspiring showcase of a leader's global legacy juxtaposed against current challenges, urging Singapore to continue its path of progress.

Lim Tean advocates for Tan Kin Lian: A visionary leader for Singapore’s Presidency

In his speech at Mr Tan Kin Lian's launch of his presidential bid, Mr Lim Tean passionately championed the need for a truly Independent President. Highlighting Mr Tan Kin Lian's unique credentials and genuine concern for the wellbeing of Singaporeans, the Peoples Voice leader emphasized the pressing challenges of rising living costs and job insecurities faced by the public. Mr Lim depicted Mr Tan Kin Lian as a beacon of hope for the nation, advocating for a leader who genuinely understands and represents the people’s aspirations.

Tan Jee Say endorses Tan Kin Lian for President: A courageous, genuine, and humble...

In advocating for a truly representative leader, Tan Jee Say underscored Tan Kin Lian's humility, courage, and genuine dedication. Highlighting the pressing need for restored public trust and effective independence, Tan Jee Say emphasized that Tan Kin Lian, as the 'People's President', would bring back hope to Singaporeans and champion true democracy

Tan Kin Lian’s pledge: Rekindling unity and charting a vigorous future for Singapore

In the press conference to announce his bid for the Singapore presidency, Tan Kin Lian emphasizes safeguarding Singapore's reserves and strengthening public service integrity. Drawing on his 30-year leadership at NTUC Income, he envisions a future with affordable living, accessible housing, and job stability, pledging collaboration with the government for a united nation.

Strengthening Singapore’s political foundations: A call to action by Leong Mun Wai on Singapore’s...

Leong Mun Wai urges Singaporeans to strengthen political checks and balances, emphasizing, 'The best is yet to be for Singapore if we dare to make the right decision in upcoming elections.

Trending posts