Morning Wrap (10.09.2023)

Indexes from the Asia-Pacific region are recording an exceptionally flat trading session. Changes in indexes are limited to +/- 0.30%. The market in China is flat between -0.10% and 0.10%. The Japanese Nikkei 225 index is down 0.05%, and the contracts for the Singapore index SG20cash are down by 0.32%.

Indexes in the USA closed on a positive note, recording over 1.0% gains and recovering some of the losses from the previous week. Gains were noticeable across all sectors, suggesting a strong rebound. The US500 closed up 1.20%, and the US100 nearly 1.70%, closing above the resistance level at 18,600 points.

Futures contracts on European indexes indicate a lower opening for the cash session. DAX and UK100 are quoted about 0.20-0.30% lower.

One of the weaker currencies today is the Canadian dollar, but the US dollar is also experiencing slight declines. Volatility in the forex market is similarly low as in the stock market.

The trade report from China for August turned out better than analysts expected. Exports exceeded expectations and accelerated to 8.7% y/y despite several months of a slowdown in export orders. The value of Chinese exports increased in August at the fastest rate in 17 months. Imports slightly dropped and increased by 0.5% y/y against expectations of 2.0% and 7.2% in the previous month.

Japanese LDP activist Ishiba claims that a key task for Japan is to completely exit deflation. Shigeru Ishiba is likely the most popular candidate for the next Prime Minister of Japan.

Israeli airstrikes on a tent camp for displaced Palestinians killed and injured 65 people in the southern Gaza Strip, civilian rescue services reported on Tuesday. The Israeli military stated that it targeted a Hamas command center.

Residents and doctors said that the tent camp near Khan Younis in the Al-Mawasi area, designated as a humanitarian zone, was hit by at least four missiles. The camp is crowded with displaced Palestinians who fled from other parts of the territory.

In the financial market, no significant reaction is observed, and oil continues to fall by 0.45% to $68.45 per barrel. The main reason for the declines is investors' concerns about an upcoming economic slowdown.

Bitcoin is slightly down after yesterday's strong rebound. The price of Bitcoin rebounded to as high as 58,000 USD at the end of the day, marking nearly a 6% increase. Today, we are seeing a slight correction of 0.30% to 56,900 USD. Similar declines are observed in the altcoin sector and Ethereum.