Weaker-than-expected consumer sentiment readings combined with continued gains in Treasury yields and the US dollar fuelled a broad selloff Tuesday, sending the S&P 500 Index and the Nasdaq Composite to their fifth declines in the past six sessions and their lowest closing levels since early June. The Dow fell 1.14%, the S&P 500 dropped 14.7% and the Nasdaq Composite tumbled 1.57%, with all 11 S&P sectors finishing lower. Elsewhere, European shares also ended in negative territory, with the Euro Stoxx 50 down a further 0.9%. 

Summary for 27.09.2023 

  • Asian equity markets were mixed on Wednesday as investors digested data showing Australia’s monthly inflation gauge accelerated slightly to 5.2% in August, while China’s industrial profits declined 11.7% in the first eight months of 2023. Shares in Australia, Japan and South Korea fell, while Hong Kong and mainland China shares rose. 
  • Oil prices rose slightly in Asian trade this morning, extending a rebound from the prior session as the prospect of tighter supplies helped markets look past concerns over rising interest rates and their impact on the economy. 
  • European and US shares are poised for a steady open as traders continue to weigh the prospect of higher-for-longer rates. 
  • Profits earned by China’s industrial firms fell by 11.7% from a year earlier in the first eight months of 2023, amid weak demand at home and abroad and persisting margin pressures. The decrease followed a 15.5% slump in the prior period and a 4% fall in 2022, with profits declining in both state-owned firms and the private sector. In August alone, industrial profits jumped by 17.2% yoy, supported by early signs of economic stabilisation. 
  • The monthly Consumer Price Index (CPI) indicator in Australia climbed by 5.2% in the year to August, accelerating from a 4.9% gain in July, which was the lowest level in 17 months, matching forecasts. The monthly CPI indicator excluding volatile items and travel advanced by 5.5% in August, down from the rise of 5.8% in July. 
  • The US is on track for a 1st October shutdown despite incremental progress late Tuesday in the House and Senate on rival spending bills. Senate leaders introduced their own bill to avert a shutdown and cleared a procedural vote, while House Speaker Kevin McCarthy was able to start House debate on a series of conservative full-year spending bills.  
  • Amazon fell 4.0% yesterday after the Federal Trade Commission and 17 state attorneys general filed antitrust charges against the e-commerce company, alleging Amazon used “monopoly power” to raise prices and stifle competition. 
  • Hui Ka Yan, the billionaire chairman of beleaguered property developer China Evergrande Group, has been placed under police control. Hui was taken away by Chinese police earlier this month and is being monitored at a designated location. 
  • Barclays plc rose 3.8% on the London Stock Exchange after Morgan Stanley upgraded the bank’s shares to “overweight” from “equal weight,” citing an improved revenue outlook and opportunities for US credit card growth. 
  • Pinterest initially bounced higher but ended the day slightly lower after HSBC initiated coverage of the image-sharing company’s shares with a “buy” rating and a $32.10 price target, about 24% above its current level, citing confidence in new management. 
  • Volkswagen will suspend production of ID.3 and Cupra Born electric cars at its Zwickau and Dresden plants in Germany in the first two weeks of October due to weaker demand, a spokesperson for the carmaker said on Tuesday.