11 September 2024
US equities traded mostly higher on Tuesday, ahead of the presidential debate and CPI inflation data. The S&P 500 ended up 0.4%, led by gains in real estate and technology shares, while energy and bank stocks declined.
US Treasuries advanced (yields dropped) amid a sharp fall in oil prices and a solid 3-year Treasury debt auction result. 10-year yields declined 6bp to 3.64%.
European stock markets fell on Tuesday, with the auto sector leading losses after a major auto manufacturer’s outlook cut. The Euro Stoxx fell 0.7%, as energy and consumer cyclicals underperformed. The German DAX underperformed with a 1.0% drop, as the French CAC was down 0.2%. In the UK, the FTSE-100 fell 0.8%.
European government bonds rose (yields fell) as investors await US CPI data and the ECB policy meeting later this week. 10-year German yields inched 4bp lower to 2.13%, as 10-year French yields were also down 4bp to 2.84%. In the UK 10-year gilt yields slid 4bp to 3.82%.
Asian stock markets lacked clear direction on Tuesday ahead of the US presidential debate and CPI data releases. Japan’s Nikkei 225 ended 0.2% lower, and Korea’s Kospi lost 0.5%. Chinese equities rebounded slightly following recent weakness, with Hong Kong’s Hang Seng and China’s Shanghai Composite rising 0.2% and 0.3%, respectively. Elsewhere, India’s Sensex added 0.4%, driven by gains in technology stocks.
Crude oil prices fell sharply on Tuesday amid rising concerns over softer China and US demand outlook, and as investors monitored how the hurricane would affect US refineries. WTI crude for October delivery settled 4.3% lower at USD65.8 a barrel.
China’s trade surplus surprised to the upside, reaching USD91bn in August, amid an unexpected pickup in exports (+8.7% yoy in USD terms) and weaker-than-expected imports (+0.5% yoy) reflecting soft domestic demand.
In the UK, pay growth cooled to more than a two-year low in July and the unemployment rate fell to 4.1% (from 4.2% in June). This is likely to keep the Bank of England on track to cut interest rates again before the end of the year.
In the US, small business optimism had increased for four consecutive months but ebbed in August, fully reversing last month’s rise, amid rising uncertainty ahead of the US presidential election and expectations of weak sales.
In Brazil, headline and core inflation had picked up in recent months but August saw a modest improvement, with the headline rate dropping back to 4.2% yoy from 4.5%.
In the US, core CPI inflation has returned to an improving trend in recent months, which is likely to continue amid a cooling labour market. The Fed will be watching the figure closely ahead of its interest rate decision on 18 September.
This document has been issued by The Hongkong and Shanghai Banking Corporation Limited (the "Bank") in the conduct of its regulated business in Hong Kong and may be distributed in other jurisdictions where its distribution is lawful. It is not intended for anyone other than the recipient. The contents of this document may not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose. This document must not be distributed to the United States, Canada or Australia or to any other jurisdiction where its distribution is unlawful. All non-authorised reproduction or use of this document will be the responsibility of the user and may lead to legal proceedings.
This document has no contractual value and is not and should not be construed as an offer or the solicitation of an offer or a recommendation for the purchase or sale of any investment or subscribe for, or to participate in, any services. The Bank is not recommending or soliciting any action based on it.
The information stated and/or opinion(s) expressed in this document are provided by HSBC Global Asset Management Limited. We do not undertake any obligation to issue any further publications to you or update the contents of this document and such contents are subject to changes at any time without notice. They are expressed solely as general market information and/or commentary for general information purposes only and do not constitute investment advice or recommendation to buy or sell investments or guarantee of returns. The Bank has not been involved in the preparation of such information and opinion. The Bank makes no guarantee, representation or warranty and accepts no responsibility for the accuracy and/or completeness of the information and/or opinions contained in this document, including any third party information obtained from sources it believes to be reliable but which has not been independently verified. In no event will the Bank or HSBC Group be liable for any damages, losses or liabilities including without limitation, direct or indirect, special, incidental, consequential damages, losses or liabilities, in connection with your use of this document or your reliance on or use or inability to use the information contained in this document.
In case you have individual portfolios managed by HSBC Global Asset Management Limited, the views expressed in this document may not necessarily indicate current portfolios' composition. Individual portfolios managed by HSBC Global Asset Management Limited primarily reflect individual clients' objectives, risk preferences, time horizon, and market liquidity.
The information contained within this document has not been reviewed in the light of your personal circumstances. Please note that this information is neither intended to aid in decision making for legal, financial or other consulting questions, nor should it be the basis of any investment or other decisions. You should carefully consider whether any investment views and investment products are appropriate in view of your investment experience, objectives, financial resources and relevant circumstances. The investment decision is yours but you should not invest in any product unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives. The relevant product offering documents should be read for further details.
Some of the statements contained in this document may be considered forward-looking statements which provide current expectations or forecasts of future events. Such forward looking statements are not guarantees of future performance or events and involve risks and uncertainties. Such statements do not represent any one investment and are used for illustration purpose only. Customers are reminded that there can be no assurance that economic conditions described herein will remain in the future. Actual results may differ materially from those described in such forward-looking statements as a result of various factors. We can give no assurance that those expectations reflected in those forward-looking statements will prove to have been correct or come to fruition, and you are cautioned not to place undue reliance on such statements. We do not undertake any obligation to update the forward-looking statements contained herein, whether as a result of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in the forward-looking statements.
Investment involves risk. It is important to note that the capital value of investments and the income from them may go down as well as up and may become valueless and investors may not get back the amount originally invested. Past performance contained in this document is not a reliable indicator of future performance whilst any forecasts, projections and simulations contained herein should not be relied upon as an indication of future results. Past performance information may be out of date. For up-to-date information, please contact your Relationship Manager.
Investment in any market may be extremely volatile and subject to sudden fluctuations of varying magnitude due to a wide range of direct and indirect influences. Such characteristics can lead to considerable losses being incurred by those exposed to such markets. If an investment is withdrawn or terminated early, it may not return the full amount invested. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavourable fluctuations in currency values, from differences in generally accepted accounting principles or from economic or political instability in certain jurisdictions. Narrowly focused investments and smaller companies typically exhibit higher volatility. There is no guarantee of positive trading performance. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in some established markets. Economies in emerging markets generally are heavily dependent upon international trade and, accordingly, have been and may continue to be affected adversely by trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which they trade. These economies also have been and may continue to be affected adversely by economic conditions in the countries in which they trade. Mutual fund investments are subject to market risks. You should read all scheme related documents carefully.
Copyright © The Hongkong and Shanghai Banking Corporation Limited 2024. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of The Hongkong and Shanghai Banking Corporation Limited.
Issued by The Hongkong and Shanghai Banking Corporation Limited
