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South Korean President Lee Jae-myung: We must expedite the administrative processes related to the chip industry cluster.July 6th - Members of the New Zealand Institute of Economic Researchs (NZIER) Shadow Monetary Policy Committee held nearly equal views, reflecting uncertainty about the Reserve Bank of New Zealands (RBNZ) policy outlook ahead of its July meeting. The NZIER Shadow Monetary Policy Committee narrowly supported keeping the RBNZs Official Cash Rate (OCR) unchanged at 2.25% in July, but called it a move roughly equivalent to a 25 basis point rate hike. Those supporting raising the OCR to a neutral level as soon as possible cited rising inflation as the primary reason. Weak demand and high unemployment were considered key reasons for carefully weighing tightening policies. Members differed on the impact of oil prices, with some believing the inflationary impact was temporary and waning, while others warned that price pressures could persist for a longer period. Some members indicated that the next significant policy assessment would be around the time of the second-quarter CPI data release. The committee unanimously agreed that the OCR should rise to 3% to 3.25% over the next year. Several committee members stated that monetary policy needs to gradually return to a neutral level, while also pointing out that weak demand and high unemployment mean the Fed should carefully manage the pace of tightening.International crude oil prices are trending weakly. A chart provides a quick overview of the pre-market conversion prices of crude oil between domestic and international markets.Spot gold and silver rebounded from their lows; a chart provides a quick overview of the pre-market prices of precious metals, converted between domestic and international markets.July 6th - Samsung Electronics, the worlds largest memory chip manufacturer, is set to release its second-quarter results on Tuesday. Analysts average forecast predicts preliminary operating profit of 84.3 trillion won (approximately $55.1 billion), an 18-fold increase year-over-year, exceeding its full-year profit for 2025. Revenue is expected to grow by 127%, reaching a record 169 trillion won. Since June, chip stocks have experienced several significant corrections due to market concerns about intensified competition, potential overcapacity, and the return on massive AI investments. This further amplifies the importance of Samsungs results, as market expectations are already high, leaving little room for the company to disappoint. Dave Mazza, CEO of Roundhill Financial, stated, "Samsungs results come at a time when the market is simultaneously questioning both the supply and demand sides of the memory chip investment logic. If the results are close to market expectations, it will help quell the controversy and benefit Samsung."

Hang Seng Index, ASX200, Nikkei 225: Fed Fear Weighs on Sentiment

Skylar Shaw

Feb 13, 2023 15:51

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Market Snapshot

The Hang Seng Index, ASX 200, and Nikkei 225 all saw a gloomy morning session.


This morning, there were no economic indications to take into account for investors. Investors have to think about central bank monetary policy aims in the absence of statistics.


The US and sub-component data for Michigan Consumer Sentiment indicated a more hawkish Fed policy stance. According to preliminary data, the Michigan Consumer Sentiment Index increased in February from 64.9 to 66.4. Interest was also generated by the sub-components, with the Michigan Inflation Expectations Index rising from 3.9% to 4.2%.


The markets received a warning from Friday's Inflation Expectations Index as investors anticipated the US CPI Report on Tuesday. The Fed's rate-hawks would have the power to raise interest rates over 5% in the event of an unanticipated increase in the US annual inflation rate.


China's annual inflation rate increased last week from 1.8% to 2.1% in January, while the inflation rate in the Euro area decreased from 9.2% to 8.5%. According to the Fed's preferred Core PCE Price Index figures, inflation has moderated but is still much higher than pre-pandemic levels, offering the Fed aggressive justification to raise interest rates over 5%.


The Dow and the S&P 500 had increases of 0.50% and 0.22%, respectively, while the NASDAQ Composite Index dropped by 0.61% on Friday.