In today’s briefing:
- Hong Kong: How Much GDP Is Deduced from the Northern Spending of Hong Kong Residents
- Iron Ore Prices on Fire on Hopes of China’s Third Plenum
- The Heat Is On: News Flow and Sentiment in CHINA/HONG KONG (July 5th)
- Paladin-Fission Merger Primed to Benefit from Rising Uranium Demand
- Eurozone: Will the Tight Labor Market Persevere?
- US Nonfarm Payroll Change 206k (consensus 190k) in Jun-24
- HEW: Passing Political Parties
Hong Kong: How Much GDP Is Deduced from the Northern Spending of Hong Kong Residents
- It is estimated that 0.8 million Hong Kong residents spend weekends at other Bay Areas
- These residents spend an average of HKD730 on a weekend in Shenzhen
- The value-added factor for food, alcoholic drinks, and tobacco as well as retail trade are both 0.12, which gives 3.64 billion HKD, or 3.5% in annual GDP
Iron Ore Prices on Fire on Hopes of China’s Third Plenum
- Anticipation of an extensive stimulus package at China’s Third Plenum, aimed at revitalizing the decelerating economy, is driving a rebound in iron ore prices.
- China’s iron ore imports have increased by 7% year-over-year despite a 3% decline in steel output, leading to a buildup in inventories on-shore.
- The convergence of technical signals and seasonal trends in the SGX TSI Iron Ore Index suggests a bullish market stance, highlighting potential profit opportunities.
The Heat Is On: News Flow and Sentiment in CHINA/HONG KONG (July 5th)
- China and Hong Kong saw positive ETF flows for the week.
- Dividend Yield, Low Volatility and Value strategies have outperformed during the market correction in Hong Kong.
- Lufax Holdings jumps after announcement that Ping An will increase stake. Fufeng slumps after announcing a decline in 1st half profit.
Paladin-Fission Merger Primed to Benefit from Rising Uranium Demand
- Combined entity of Paladin Energy and Fission Uranium expected to command a market capitalisation of USD 3.5 billion.
- Following the Russia-Ukraine war, uranium miners started looking for alternative sources in low-risk regions, putting focus on US and Canada.
- Post-Merger, Paladin will have the second-largest resource base of any listed uranium miner in the Western Hemisphere, second only to Cameco.
Eurozone: Will the Tight Labor Market Persevere?
- With markets and policy makers very much focused on inflation, the EZ labor market continues to shine –apparently. Indeed, the EZ jobless rate has remains at a record-low of 6.4%.
- That will perturb ECB hawks wary of higher ensuing wage pressures.
- But this apparent record-low may exaggerate the tightness in the labor market.
US Nonfarm Payroll Change 206k (consensus 190k) in Jun-24
- US Nonfarm Payroll additions for June 2024 surpassed expectations, however, showed a slowdown compared to prior months, particularly in private sector hiring.
- There is an increase in unemployment and only modest wage growth, indicating a weakening labour market.
- This economic situation is likely to prompt a Federal Reserve rate cut in the near future.
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.
HEW: Passing Political Parties
- UK, France, and US voters are showing support for opposition parties in recent elections, with a notable shift away from Biden in the US. Central banks in these countries are expected to make cuts in August and September.
- Upcoming events include monetary policy decisions from the Reserve Bank of New Zealand, Bank of Korea, Bank Negara Malaysia, and Central Reserve Bank of Peru.
- The second round of French elections and US inflation data are anticipated to be the focal points for global markets, with a potential September cut from the Federal Reserve if outcomes are benign.
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