📆 Wednesday, August 9
► Global stocks stabilized on Wednesday. Market dips from previous financial concerns were bought up on Tuesday. The Euro Stoxx 50 in particular is up by 1.1% with banks rebounding. US futures are little changed in pre market trading but all indices are slightly up at around +0.20%. We expect a rather quiet day, as investors are looking for further guidance and few economic data will be released today.
► The recovery of banks, especially in Europe and Italy respectively, was supported by Italy's assurance that the new unexpected loss tax will not exceed 0.1% of a company's assets, which eased investors' concerns.
► China's July 2023 data showed a 0.3% year-on-year (y/y) drop in consumer prices, the first decline since February 2021, with core consumer prices rising by 0.8% y/y. On a monthly basis, consumer prices increased by 0.2%, and producer prices declined 4.4% y/y, marking a tenth month of deflation but showing some easing in deflation. Food prices decreased by 1.7% y/y. China's statistics agency expects the drop in CPI to be temporary, influenced by high base effects from the previous year.
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