Morning wrap (10.08.2023)

• Indices from Asia-Pacific traded mixed today. Nikkei traded 0.40% higher, Nifty 50 traded 0.40% down and indices from China declined up to 0.60%. S&P/ASX 200 gained 0.16% while Kospi declined 0.26%.

• Following a tech-driven decline on Wall Street, Asian stocks faced challenges on Thursday. Investors are anticipating US monthly inflation data to guide the Federal Reserve's forthcoming decisions.

• The S&P 500 dropped 0.7% and the Nasdaq 100 by 1.1%, with Nvidia seeing a significant 4.7% decline. This reflects a reevaluation of the tech boom driven by artificial intelligence.

• Wall Street's sentiment was affected by a decrease in major tech stocks and rising energy prices. The upcoming inflation data will influence the Federal Reserve's future strategies. 

• Chinese internet giants, including Baidu and Alibaba, order $5bn of Nvidia chips, anticipating US restrictions on exports.

• Disney announced a price hike for its streaming services, with increases up to 27%.

• Long-term Treasury rates remained consistent in Asia after a decrease the previous day. A recent $38 bln auction for 10-yr Treasuries settled at 3.999%, the third consecutive issue with a rate below 4%.

• The Biden administration introduced new regulations restricting US investments in China's advanced tech sectors, citing national security concerns. In response, China's commerce ministry expressed serious concerns and emphasized the importance of market economy principles.

• Japan's Producer Price Index (PPI) Year-over-Year was reported at 3.6%, slightly above the forecasted 3.5%.

• Precious metals traded mostly higher. Gold and silver increased 0.15%.

• The US Securities and Exchange Commission plans to challenge a July court verdict related to its lawsuit against Ripple Labs, which had determined that XRP sales to retail investors weren't securities.

OIL.WTI is up by 0.4%, with the price rising to 84.5 dollars. After recent strong increases, the oil price is at this year's highs and is approaching the key resistance zone at the 82-84 dollar level.