Market Commentary – September 14, 2021

Kevin Jock

14th September 2021

US equities recovered on Monday, rallying back from earlier losses to break a five-day losing streak. The S&P 500 finished the day 0.2% higher while the Nasdaq has failed to regain positive territory, dipped by nearly 0.1%. Financials was among the top-performing sectors in the S&P 500 index on Monday, up by 1.1%.

The same pattern was repeated in the European market, whereas the financial stocks led the indices higher, which helped STOXX 600 benchmark closed up 0.3% in yesterday, ending five sessions of continuous losing streaks. London’s FTSE 100 advanced 0.6%, as did DAX.

In Asia, Japan’s Nikkei hit a more than 31 year high on today, with cyclical stocks rising the most. The indices touched 30,795.78, its intraday high since August 1990, before ending the morning session up 0.38% at 30,562.42. In China, the blue-chips fell as it was dragged by real estate and financials after the country’s most-indebted developer warned of a risk of a cross-default, with the CSI 300 index fell 0.3% at the end of today’s morning session.

Brent crude jumped to nearly $74 a barrel, the strongest price since early August following a bullish forecast by Opec in its monthly report as oil demand in 2022 was now projected to reach 100.8m barrels a day, supported by a steady economic outlook in all regions. On the other hand, the greenback inched higher in yesterday after logging its best week in three on last Friday, with the EURUSD fell back under $1.18.


Figure 1 (Source: IS Prime) EURUSD Daily : EURUSD pair is not that far from this year’s low at around 1.1665.

Headliner to Review

  • Japan has released its newest PPI figure, rose 5.5% in August from a year earlier, slightly below a median market forecast for a 5.6% gain. It was the sixth straight month of increase and such wholesale inflation hovered near a 13-year high as raw material imports continued to rise on solid global demand, which putting pressure on companies to pass on higher costs to households.

Headliner to Watch

  • The UK CPI figure is expected to be 2.9%, much higher than the previous figure of 2.0%, which could rise question about whether the minimum conditions for a rate increase had already been met from the Bank of England if the actual CPI figure continue to accelerate.
  • The Canadian CPI data is also about to release in tomorrow, with the forecast figure of an increase by only 0.1%, much lower compared to the previous actual figure of 0.6%.

Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice.

Antony Tan
Kerry Man