Macro: Sandcastle economics
Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.
Summary: Australia's stock market rally continues as the globe is forced to up its ante for green energy solutions. AUD rallies. Yen continues to slide. Australia pledges $250 billion for hydrogen projects. The iron ore prices pushes back above $150 again. Why to be cautious of tech stocks, look at Asian chip stocks, and selling Chinese shipping container stocks. And why to consider investing in hydrogen and uranium.
Co-written by Market Strategists Jessica Amir in Australia, Redmond Wong in Hong Kong, Charu Chanana in Singapore.
What’s happening in equites that you need to know?
What you need to consider
Surge in Tokyo CPI won’t nudge BoJ, Yen decline continues. Tokyo core CPI rose at the fastest pace in over two years. March CPI ex-fresh food was up by 0.8% y/y, the highest since December 2019, but still below the Bank of Japan’s 2% target which means the central bank is unlikely to join its global peers in tightening policy for now. USDJPY rose above the 122 handle and it is on track for three consecutive weekly gains. AUDJPY has been a key focus as Australia is the world’s largest exporter of LNG and a prominent exporter of other important commodities. Adding insult to injury, North Korea has been out testing missiles, with Japan deeming that the latest test was of an ICBM that flew some 6,000 kilometres. This would be the first intercontinental ballistic missile (ICBM) test since 2017.
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