Equities 

Source: All data are sourced from Lion Global Investors and Bloomberg as at 4 September 2023 (4pm SGT) unless otherwise stated. *All figures stated in US Dollars.

Fixed Income

Source: All data are sourced from Lion Global Investors and Bloomberg as at 4 September 2023 (4pm SGT) unless otherwise stated. *All figures stated in US Dollars.

Macro & Markets

Structural Shifts in the Global Economy

• During the recent Jackson Hole Economic Symposium, Federal Reserve Chairman Jerome Powell adopted a somewhat hawkish tone, highlighting that while inflation has trended lower, “it remains too high”. At the same time, he also acknowledged that the full impact of the interest rate hikes we saw may have not materialized fully. Most market participants have begun to pencil in interest rate cuts next year.

Elevated Rates for Longer

• US 10-year yields hit a high of 4.35% in August, near levels that were last seen in 2007. A confluence of factors may have contributed to the spike, including Bank of Japan’s (BOJ) tweak to Yield Curve Control, Treasury’s larger-than-expected issuance plans, as well as the growing narrative of US soft landing that could have prompted investors to revise up their rates outlook.

Movers & Shakers

Potential BRICS Expansion 

• The Brazil, Russia, India, China, and South Africa (BRICS) group of nations have decided to invite Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates to become full members of BRICS, effective from 1 January 2024. Such an outcome have far-reaching implications – in 2022, the current BRICS members accounted for 14.2% of world crude oil exports while the potential new members accounted for another 25.4% of the total (Source: OPEC). 

Nvidia Blow Out Numbers 

• Nvidia reported solid blow out quarterly results, crushing all market expectations. Company is riding strongly on the AI boom, as it makes the graphic processors required by data center operators to build tools like ChatGPT.

Further Easing on China Announced 

• Authorities have rolled out a series of stimulus measures gradually to rejuvenate its economy. While the halving of its stamp duty on stock trading on 27 August 2023 has brought about a short-term boost to the market, sentiment remains cautious on the macroenvironment.

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