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On August 23, Ukrainian President Volodymyr Zelenskyy stated that Ukraine did not participate in any actions to sabotage the Nord Stream gas pipeline connecting Russia and Europe. This comes after a Ukrainian suspect wanted by Germany was arrested in Croatia, becoming the second Ukrainian suspect detained in the case. Zelenskyy said, "Ukraine has never participated in this operation, not even in the first place. I hope the investigation will be fruitful. We are ready to provide assistance." Zelenskyy indicated that the Ukrainian Prosecutors Office and the Ministry of Foreign Affairs are investigating the matter.On August 23, Federal Reserve Chairman Neel Kashkari downplayed market concerns about rising U.S. Treasury yields, stating that the market is functioning well and the recent surge is unlikely to affect discussions on monetary policy. Kashkari said on Sunday, "All indications suggest that the U.S. Treasury market is functioning normally, trading is proceeding smoothly, and market liquidity is ample, therefore we can use the federal funds rate as the primary policy tool for reducing inflation." Last week, yields on U.S. Treasury bonds of all maturities rose, with the benchmark 10-year Treasury yield closing at around 4.73%. The 30-year Treasury yield remained near its highest level since 2007. Kashkari stated that while current Treasury yields are high relative to recent historical levels, yields in the 1990s were much higher. "We need more data, but I dont want to prejudge the outcome of the next meeting," he said. "However, I dont currently believe that inflation will fall back to the target level in the short term."Russian President Vladimir Putin: Ukraines 40-day "influence operation" against Russia has failed to change the situation, and Russian forces are continuing their advance.On August 23, affected by Typhoon Zitan (No. 19 of this year), many parts of Guangxi experienced heavy to torrential rain, with some areas experiencing extremely heavy rain. Several rivers exceeded warning levels, and some towns in Fangchenggang and Chongzuo cities faced flooding risks. On August 23, Guangxi held a video conference to coordinate flood and typhoon prevention efforts. According to statistics, as of 6 PM on August 23, 64 townships (subdistricts) in 17 counties (cities, districts) of 6 cities including Fangchenggang, Chongzuo, and Nanning experienced heavy torrential rain, with some areas experiencing extremely heavy rain. 92 townships (subdistricts) in 30 counties (cities, districts) of 10 cities experienced heavy rain. 15 stations on 10 rivers, including the Mingjiang River and its tributaries Gongan River and Pailian River, and the Zuojiang River and its upstream Pinger River, exceeded warning levels. The typhoon has affected 61,000 people, with 54,000 relocated and 8,087 people urgently relocated and resettled. All flood control and disaster relief work is being carried out in an orderly and solid manner.The Israeli military stated: "We attacked Hamass weapons production facility in Magazi, in the central Gaza Strip, and killed its commander."

Hang Seng Index, ASX200, Nikkei 225: Hang Seng Hits Reverse

Cory Russell

Feb 24, 2023 15:22

Industry Snapshot

This morning's class was diverse. The Nikkei 225 and ASX 200 both made advances, and US economic data and a positive US stock market session provided support in the morning. The US Futures, however, were followed into bearish terrain by the Hang Seng Index.


The immediate concerns of a more active Fed interest rate trend were allayed on Thursday by US economic data. The US economy grew less quickly than anticipated, but the job market stayed constrained. In Q4 the economy expanded by 2.7% as opposed to a preliminary 3.2%. However, the Fed was given some fuel for thought when initial unemployment applications dropped from 195k to 192k.


The NASDAQ Composite Index increased by 0.72% in reaction to the statistics and US business profits, while the Dow and the S&P 500 increased by 0.33% and 0.53%, respectively.


The heavyweights were held back from making more significant advances this morning by market anxiety regarding today's US Core PCE Price Index figures. A challenging US session is expected, as evidenced by the Dow Mini's 19-point decline and the NASDAQ Mini's 18-point decline.


Kazuo Ueda, the new governor of the Bank of Japan, brought comfort to the market by promising to keep the country's ultra-loose monetary policy in place despite the most recent inflation figures.


This morning's Asian economic schedule was relatively light as the G20 meeting got started in India, where inflation, the situation in Ukraine, and the connection between China and Russia could be heated subjects.

ASX 200

The overnight advances in the US provided assistance for the ASX 200's rise of 0.27%. Investors were not given any statistics from the Australian economic schedule this morning.


Financial equities provided assistance. National Australia Bank (NAB) and ANZ Group (ANZ) both saw gains of 0.53% and 0.57%, while Westpac Banking Corp (WBC) increased by 0.35%. With an increase of 1.34, the Commonwealth Bank of Australia (CBA) took the lead.


The early session of mining equities was negative. BHP Group Ltd (BHP) and Rio Tinto (RIO) both experienced declines of 3.34% and 1.83%, while Fortescue Metals Group (FMG) experienced a decline of 1.99%. The price of Newcrest Mining (NCM) fell by 2.54%.


Crude oil prices increased, supporting energy asset values. Gains of 0.80% and 1.15% were recorded by Santos Ltd. (STO) and Woodside Oil Company (WDS), respectively. This morning, WTI Oil increased 0.77% to $75.97.

Hang Seng

This morning, the Hang Seng fell 1.33%, defying the general Asian market pattern. This morning's market risk appetite was not influenced by any economic data. On the first anniversary of Russia's attack of Ukraine, the Hang Seng Index was negatively impacted by a downbeat morning session for the CSI 300.


Alibaba Group Holding Ltd (HK:9988) fell by 4.15%, while Tencent Holdings Ltd (HK:0700) fell by 2.02%.


Additionally, the morning was negative for equities in banks. China Construction Bank (HK: 0939) and Industrial and Commercial Bank of China (HK:1398) both experienced declines of 0.61% and 1.00%, respectively, while HSBC Holdings PLC fell by 0.94%.