Markets mixed at start of week

Published 2023/07/11, 08:27
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Global markets were mixed at the start of the week as hopes for fresh stimulus from China boosted Eastern markets, while most markets in the West closed down as investors worried about the future path of monetary policy tightening. Markets in Hong Kong and China rose by 0.62% and 0.22% respectively on Monday “amid hopes that China will soon launch fresh support measures after disappointing inflation data for June sparked deflationary concerns. Official data (on Monday) showed consumer prices in the mainland unexpectedly were flat, while producer prices shrank the most” in seven and half years, Trading Economics reported.

Weaker-than-expected consumer and producer price data from China impacted the local bourse on Monday, which closed down by 0.64%. At 18h15 one rand traded at R18.84/USD, R24.18/GBP and R20.69/EUR. “Market sentiment remained dominated by ongoing concerns about the outlook for the global economy and interest rates,” added Trading Economics.

Wall Street was mixed at 18h20, with the Dow Jones trading up, while the S&P 500 and Nasdaq were trading lower dragged down by big technology counters. Now “investors brace for the US CPI report and the kick-off of the second quarter earnings season later in the week. The upcoming inflation report is expected to offer additional evidence regarding inflationary pressures and provides insights into the (US) Federal Reserve's future actions,” stated Trading Economics.

Gains in energy companies made up for losses in mining counters in European markets, which caused major markets on the continent to close higher on Monday. Britain’s FTSE 100 added 0.23%, while the German DAX and French CAC40 both closed up by 0.45%.

Concerns about a global economic slowdown kept the prices of oil and gold steady on Monday evening. At 18h20 a barrel of Brent crude traded at $78.49, while an ounce of gold traded at $1 924.03 at the same time.

PSG Wealth Daily Investment Update, 11 July 2023

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