The S&P 500 Index and Nasdaq Composite both ended near four-week lows Wednesday as tech shares remained weak and concerns over the banking sector returned ahead of critical inflation readings over the next two days.  In contrast, European shares rose yesterday, with the Euro Stoxx 50 Index advancing by 0.7% as energy companies and the banking sector led the advance. 

Summary for 10.08.2023 

  • Most Asian shares traded in a flat-to-low range on Thursday as the US government outlined new restrictions on technology investments in China, while anticipation of a key US inflation reading also kept sentiment subdued.  A mixed batch of earnings reports released out of the region this week also dampened spirits, as weak quarterly prints from Sony Corp and SoftBank Group Corp pointed to a persistent technology downturn.   
  • European and US equities are poised to extend gains in the lead-up to crucial US inflation data that may shed light on the Fed’s next course of action. 
  • Oil prices fell slightly this morning, retreating from multi-month highs as commodity markets continued to fret about production cuts from key OPEC+ members Saudi Arabia and Russia.  Meanwhile, EIA data showed US crude inventories rose by 5.85 million barrels last week, well above market expectations for a 0.56 million-barrel build. 
  • President Joe Biden imposed limits on US investments in China as part of a push to restrict the country’s ability to develop next-generation military and surveillance technologies that might threaten US national security.  The order, announced Wednesday, would regulate US investments in some Chinese semiconductor, quantum computing and artificial intelligence firms. 
  • Walt Disney late Wednesday reported stronger-than-expected fiscal third-quarter earnings though the media and entertainment giant’s revenue fell short of analysts’ estimates.  The shares still rallied by 2.2% in after-hours trading. 
  • Siemens is seeing a normalisation in demand, particularly in China, the company said this morning as it reported third-quarter profit which missed forecasts.  Industrial profit fell 4% to €2.75 billion for the three months to the end of June, missing analysts’ forecasts for €2.90 billion.  Siemens kept its group-level outlook for the year to the end of September but lowered its expectations for its digital industries business which supplies factories with software and controllers. 
  • Deutsche Telekom this morning nudged up its adjusted earnings guidance for 2023, citing high expectations for its business in Germany and Europe, and reported a rise in net profit for the second quarter. 
  • Verizon Communications is raising prices on some of its wireless plans as the No. 1 US telecom firm by subscribers looks to boost revenue growth after a post-pandemic slowdown.