The IMF has downgraded the 2023 and 2024 growth outlooks for Singapore and other Southeast Asian economies due to slowing global growth, though Vietnam has benefited from supply chains relocating from China. Japanese firms are also taking steps to help employees fight rising prices and a labour crunch, such as offering inflation allowances, pay hikes, and reskilling of workers, to boost productivity and fuel private consumption.
EQUITY
Despite a sluggish start on Monday, the U.S. stock market is poised for a volatile week ahead with central bank meetings, earnings reports, and employment data on the horizon. While some companies, such as Harmonic and NXP Semiconductors, struggled with earnings that fell short of expectations, investors can look forward to CB consumer confidence data and earnings from top players such as Exxon Mobil, McDonald's, AMD, and GM, which are all scheduled for Tuesday.
GOLD
Gold prices took a step back on Tuesday as the strong dollar overshadowed the market ahead of the Federal Reserve meeting. With recent soft inflation readings from the U.S., the market is optimistic that the Fed will adopt a more gradual approach to interest rate hikes in 2023. The resurgence of the dollar index has put some pressure on the precious metal markets.
OIL
Oil prices dropped 2% ahead of an OPEC+ meeting that is rumoured to keep production targets the same. The US dollar is up again, which may explain the drop in oil prices. The Kremlin also stated that it will not follow the West's price caps, leaving it to the oil companies to sell their oil at the best price.
CURRENCY
The US Federal Reserve is widely expected to raise interest rates by 25 basis points this week, which could lead to further dollar strength. At the same time, the euro, yen, and Australian dollar are all expected to weaken against the US dollar as the Bank of England and European Central Bank are both expected to raise rates by 50 basis points this week.