Market Commentary – September 15, 2021

Kevin Jock

15th September 2021

Wall Street indices dropped on Tuesday. The S&P 500 closed the New York session down 0.57%, with bank stocks the worst performing sector on the blue-chip index, while the Nasdaq slid 0.4%. The lower-than-expected US consumer price figures warmed investors to the view that the Fed would have more time to remove crisis-era stimulus.

The European stocks ended flat on Tuesday, with banks and luxury shares leading the declines as optimism over cooling US inflation growth in August proved to be short-lived. Both the FTSE 100 and CAC 40 fell 0.49% and 0.36% respectively.

Elsewhere in Asia, the Japanese shares on today retreated from the peaks, as investors took profits after a strong rally over the last two weeks and Chinese regulatory concerns dragged SoftBank Group, with the Nikkei dropped 0.52%. Furthermore, Macau casino stocks shed $16bn on today, as the local government opened a 45-day public consultation on revising the gaming law, which is expected to step up scrutiny of operators in the world’s biggest gambling hub. Shares of Sands China tumbled 29% and Wynn Macau fell 28% in HK trading on Wednesday.

On the other hand, Brent crude settled up 0.1%, ending a strong two-session rally. The dollar index was little changed on Tuesday, while GBPUSD pairs weakened 0.2% to $1.381, and the euro fell less than 0.1% to $1.18025.


Figure 1 (Source: IS Prime) IDX.HK.50 Daily : The IDX.HK.50 index set to reach a previous intermediate support level as negative sentiment flows from regulatory crackdown in Macau.

Headliner to Review

  • The August US CPI rose 0.3%, a tenth below the 0.4% forecasted by the market while the core CPI reading rose 0.1%, well below expectations for a 0.3% outcome. Such softer than expected outcome were contributed by the declines in both the airline fares and the used cars. Moreover, it eases concerns over an imminent acceleration in prices and should nullify and pressure on the Fed to taper in September.

Headliner to Watch

  • The Australian unemployment rate is forecast to rise to 5% from 4.6% in July, as the labor force is expected to lose 100K jobs with weekly payrolls highlighting the lockdown in New South Wales and Queensland.
  • We will also expect the US monthly core retail sales to decline by 0.1%, compare to the previous figure of a decline by 0.4% from last month.

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Antony Tan
Kerry Man