Weekly Market Updates
The US market experienced a brief two-day rebound at the start of the week, followed by continuous decline amidst the dual pressures of interest rate hikes and the escalating Israel-Palestine conflict.
The market reacted strongly after Federal Reserve President Powell implied that there would be further interest rate hikes this year and an extension of higher interest rates, contrary to what many would have thought.
The US economic data presents an uncertain outlook regarding interest rate hikes, but it is becoming increasingly clear that high interest rates are likely to persist for an extended period. It is still highly uncertain whether the US Fed may look to follow through with a rate hike this year, but the third-quarter GDP and the Core PCE Price Index in the US this week are pivotal factors for the subsequent interest rate decisions.
Israel-Palestine conflict is tensing market nerves. The news of an Israeli ground offensive in the Gaza Strip that could last for three months is likely to instill fear in the market and lead to a further fall.
The European market also experienced a decline last week where localized chaos and riots were observed stemming from the Israel-Palestine conflict. It is worth noting that there is an upcoming interest rate meeting at the European Central Bank scheduled for this week.
Main Index & P/E Ratio-3 years
China's market remains shrouded in pessimism, seemingly overlooking positive economic data, including a 4.9% year-on-year GDP growth, two consecutive months of increased retail sales of consumer goods, rising industrial investment, and an improved urban unemployment rate. It seems that the market has not yet hit its lowest point, and investors will need more patience for China's market to recover following diminishing confidence. Nevertheless, a rebound will come as long as the economy and the property market continue to show signs of recovery.
Investment views
