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Global Fundamental Analysis 10/03/2023

Global Fundamental Analysis 10/03/2023, FP Markets

Opening Call: The Australian share market is to open higher.

U.S. stocks fell as jobless claims data hinted at a still-robust economy. The policy-sensitive two-year Treasury yield fell further below 4.9%. The WSJ Dollar Index declined. Oil prices posted losses for a third straight session on interest-rate worries. And gold futures settled higher as investors await Friday’s jobs report.

Australian Market

Australia’s S&P/ASX 200 closed 0.1% higher as strength in the financial and tech sectors helped offset losses among mining stocks. The tech sector rose 2.7%, as accounting software provider Xero surged 11% on the announcement of cost cuts aimed at boosting profitability.

US Market 

U.S. stocks fell after jobless claims showed that the labor market is still strong, complicating the picture for the Federal Reserve’s rates path. The S&P 500 fell 1.9%, the tech-focused Nasdaq Composite Index dipped about 2.1%, and the Dow Jones Industrial Average dropped about 1.7%.

The Labor Department said worker filings for U.S. unemployment benefits jumped more than 10% last week. But jobless claims are still historically low as demand for labor outstrips the number of people looking for work. The monthly jobs report, which is closely watched by investors, will be released Friday.

Commodities

Gold prices settled higher, with the yellow metal paring some of its losses from earlier in the week brought on by the Fed chairman’s two-day testimony to Congress. April gold prices gained 0.9% to settle at $1,834.60 per ounce on Comex.

Oil Futures

Oil futures stretched their losses into a third consecutive session, pressured by a warning from Federal Reserve Chairman Jerome Powell this week that interest rates will need to rise higher, and possibly faster, than previously anticipated. West Texas Intermediate crude for April delivery fell 1.2% to settle at $75.72 a barrel on the New York Mercantile Exchange.

May Brent crude declined by 1.3% to $81.59 a barrel on ICE Futures Europe, the lowest settlement since Feb. 22. “Oil is once again snared in the Fed rate hike loop,” said Stephen Innes, managing partner at SPI Asset Management, in a note.

Asian Markets

Earlier, in Asia, Japan’s Nikkei Stock Average rose 0.6% — its highest level since Aug. 26. Gains were led by electronics and financial stocks thanks partly to the yen’s recent weakness. Chinese shares ended lower after the country released muted February inflation data, indicating weak consumer demand.

Consumption and insurance stocks weighed on the market while telecom names were higher in volatile trading. The benchmark Shanghai Composite Index ended 0.2% lower. The Shenzhen Composite Index fell 0.1% and the ChiNext Price Index declined 0.2%.

  • Global Fundamental Analysis 10/03/2023, FP Markets
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