Renewed concerns that the US Federal Reserve (Fed) won’t be able to lower interest rates at their next meeting caused the majority of markets to close in the red on Wednesday. The S&P 500 and Nasdaq both declined by 0.70% and 1.06%, respectively, while the Dow Jones dropped by 0.57% at 22h15. In economic news, the ISM Services PMI unexpectedly increased to 54.5 points in August 2023, well above predictions of 52.5 points, indicating the greatest growth in the services sector in six months.
The German DAX fell by 0.20%, while the benchmark STOXX 600 closed down by 0.60% on Wednesday, with declines in household goods and banks contributing to the decreases. This was the sixth day in a row that European equity markets ended lower. Especially after the latest retail sales data showed that manufacturing orders in the Eurozone and Germany declined more than expected in July 2023.
The local bourse dropped 0.81% on Wednesday, dragged down by investor concerns about the state of the world economy and the possibility of increasing interest rates. Domestically, Eskom, pushed loadshedding to higher stages this week after additional generating units failed. Although business confidence in South Africa increased in the third quarter of 2023, it still remained negative.
The Hang Seng recovered from Tuesday's 2% decline to close practically flat on Wednesday as gains in real estate and finances offset declines in technology and consumer spending. In economic news, private sector output in Hong Kong contracted at a slower rate in August thanks to an uptick in consumer spending and an easing of price pressures. However, Japan’s Nikkei continued to trade in the green yesterday.
In commodities, oil prices remained high on Wednesday and traded over $90 a barrel at 22h00, while spot gold weakened to $1 916 an ounce around the same time.
