Before the opening of the European markets (24.07.2023)

  • Indices in the Asia-Pacific region saw a general decline during Monday’s trading session. Japan’s Nikkei fell 0.1%, Australia’s S&P/ASX 200 fell 0.5% and Chinese futures fell 0.8%.
  • Shares in the Asian region started the week weak due to several monetary policy decisions by central banks. Chinese investors expect further support.
  • Shares in Hong Kong and China fell, dampening sentiment despite promises to boost consumption and businesses. Chinese stocks had their worst week in four months.
  • U.S. stock futures were broadly flat in Asia after little change in the S&P 500 on Friday and strong selling by tech companies on the Nasdaq 100 after a disappointing week of reporting.
  • The yen rallied after falling more than 2% last week, largely following the Bank of Japan report. Most major currencies traded in tight ranges against the US dollar on Monday.
  • UAE Energy Minister Mazroui said the current OPEC+ measures are sufficient.
  • Japan’s Jibun Bank Manufacturing PMI was reported at 49.4, down from 49.8 previously.
  • The Japanese government forecasts a consumer price index (CPI) of around 1.5% for the 2024 fiscal year.
  • Goldman Sachs maintains its expectation that the Bank of Japan will adjust its Yield Curve Control (CCR) program at this week’s policy meeting, but points to high uncertainty.
  • Japanese Vice Finance Minister for International Affairs Kanda declined to comment on the Bank of Japan’s monetary policy.
  • Australia’s composite PMI was reported at 48.3, down from 50.1 previously. Australia’s services and manufacturing PMIs were also reported down from their previous numbers.
  • New Zealand’s annual trade balance was reported at $-15.98 billion, an improvement from the previous $-17.12 billion. The trade balance was announced at $9 million.
  • The IEA expects oil markets to tighten in the second half of 2023 and mentioned that the revision of global oil demand depends on China’s economic growth outlook at the G20 meeting.

The Japanese yen (USDJPY) fell from 137.7 to 141.5 following Friday’s announcement that the BoJ currently believes there is no need to change the Yield Curve Control (CCR) program. This information strengthens the welcoming sentiment towards the yen.

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