Morning Wrap (29.08.2024)

Indices from the Asia-Pacific region are recording a slightly positive session, except for the Chinese market, which is trading 0.00-0.50% lower. The Japanese Nikkei 225 index is up 0.60%, Australia's S&P/ASX200 is trading 0.17% higher, and futures on the Singapore SG20cash index are gaining 0.90%.

Nvidia (NVDA.US) shares dropped 6.90% in after-hours trading following the release of its quarterly results. The decline, despite better-than-expected results, suggests that investors were anticipating a significant beat of the consensus. Futures on U.S. indices are trading slightly lower today as they attempt to recover from the declines at the end of yesterday’s session.

Apple (AAPL.US) has reportedly instructed its suppliers to prepare components and parts for approximately 88 million to 90 million iPhones. This is about 10% more than the initial orders of around 80 million new smartphones last year. The information was published by the Japanese newspaper Nikkei Asia, citing sources familiar with the plan.

Futures on European indices indicate a mixed opening for the cash session. The DAX is trading with little change, while the UK100 is up 0.20%.

In the forex market, the New Zealand dollar is one of the stronger currencies in the first part of the day, gaining up to 1.00%, and the Australian dollar is up around 0.2-0.3%. On the other hand, the Japanese yen is retreating by about 0.5-1.0%.

Capital expenditures in Australia for the second quarter fell by 2.2%, compared to estimates of 1.0%. This was the largest decline since a similar drop in the third quarter of 2021. Investment in buildings fell by 3.8%, compared to -0.9% in the previous quarter. The decline was the worst since the second quarter of 2020.

Atlanta Federal Reserve President Raphael Bostic said on Wednesday that with inflation continuing to decline and the unemployment rate rising more than expected, it’s time for interest rate cuts.

Bostic also noted that he expects confirmation of the trend in the monthly employment report and the two inflation reports that are to be released before the Fed meeting on September 17-18. Bostic is generally one of the most hawkish members of the FOMC.

South Korean President Yoon Suk Yeol announced plans to reform the national pension fund to restore confidence and security for the aging population. The South Korean fund is one of the largest in the world, with assets worth $830 billion.

The cryptocurrency market is attempting to rebound after yesterday’s crash. Bitcoin is up 0.35% to $59,300, and Ethereum is gaining 0.15% to $2,530.