Global Market Financial Weekly Report –
2024 Sept. Week 2
Your comprehensive guide to this week's global financial trends, market movements, and economic insights.
Citation: BBC News、NASDAQ News
Highlights of the Week

1

US Inflation Slows
August's inflation rate in the US dropped to 2.5%, marking the slowest pace in three years. This has raised expectations of a potential rate cut from the Federal Reserve.

2

Boeing Faces Potential Strike
Boeing's labor union is on the verge of striking, as the majority of workers are unhappy with a proposed agreement offering a 25% wage increase.

3

Nuclear Fusion Breakthrough
Denver-based start-up Xcimer has announced significant progress in the development of a commercially viable fusion reactor.

4

Chery's European Expansion
Chinese automaker Chery is considering establishing a car assembly plant in the UK to avoid EU tariffs on Chinese-made electric vehicles.
US Inflation Deceleration

1

August CPI
Inflation in the United States continued its downward trend, with the Consumer Price Index (CPI) increasing by just 2.5% in August.

2

Core Inflation
Despite the positive development, core inflation, which excludes food and energy, remains at 3.2%, mainly due to persistent housing costs.

3

Federal Reserve Response
The Federal Reserve is expected to respond with a modest 0.25% rate cut, though further reductions could be limited if core inflation remains stubborn.
Boeing's Labor Challenges
Proposed Agreement
Boeing has offered a 25% wage hike to its workforce, but workers remain dissatisfied due to unresolved issues from previous labor disputes.
Potential Strike
The company is at a critical juncture as its workforce prepares for a union vote that could lead to a strike, potentially disrupting production lines.
Recovery Efforts
A strike would further strain Boeing's recovery efforts, which have already been delayed by financial losses and reputational damage.
Nuclear Fusion as Clean Energy's Future

1

Xcimer's Breakthrough
Denver-based start-up Xcimer has made significant progress in nuclear fusion technology using advanced lasers to achieve fusion.

2

Commercial Viability
The company aims to develop a reactor capable of commercial use by the mid-2030s, potentially providing an almost unlimited supply of clean energy.

3

Global Impact
This breakthrough could dramatically reduce the world's dependence on fossil fuels, marking a pivotal moment in clean energy development.
China's Economic Slowdown
Weak Consumer Demand
China's economic struggles continue as weak consumer demand weighs on growth, impacting global markets.
Property Sector Difficulties
Ongoing challenges in the property sector contribute to the overall economic slowdown in China.
Low Inflation
Recent CPI data showed just a 0.6% rise in August, underscoring the challenges facing the Chinese government.
Recovery Outlook
Without significant fiscal stimulus, China's recovery is expected to remain sluggish, further impacting global markets.
Global Market Review
US Market Performance
Nasdaq
The Nasdaq rose 1.52% over the week, driven by optimism about potential Federal Reserve rate cuts.
S&P 500
The S&P 500 gained 0.58%, reflecting positive sentiment in the broader market.
Key Drivers
Inflation data led to optimism that the Federal Reserve might slow its rate hikes, boosting market performance.
European Market Challenges
Slow Industrial Output
European markets showed slight declines due to concerns over slow industrial output, especially in Germany, where manufacturing remains weak. The German DAX index faced pressure as factory production declined by 0.8%.
Economic Data
Sluggish industrial output data revealed challenges across the Eurozone. Germany's 0.8% decline in factory production highlighted the ongoing struggles in the manufacturing sector, impacting overall market sentiment.
Market Outlook
European stocks are likely to face further pressure from weak economic data. Investors remain cautious about the region's growth prospects, particularly in light of ongoing industrial challenges and global economic uncertainties.
Asian Market Struggles
1
Japan's Nikkei
Japan's Nikkei dropped 1.49%, largely due to the yen's continued depreciation.
2
China's Stock Market
China's stock market hit a seven-month low, driven by concerns over the country's economic outlook.
3
Regional Impact
Asian markets faced challenges due to geopolitical tensions and inflationary concerns.
Economic Data Analysis
US Inflation
US inflation decelerated to 2.5%, providing some relief to markets. However, core inflation remains sticky at 3.2%.
European Output
European economic data revealed sluggish industrial output, with Germany posting a 0.8% decline in factory production.
China's Economy
China's CPI and PPI both came in below expectations, highlighting ongoing deflationary pressures and weak domestic demand.
Stock Market Outlook
US Equities
US equities are expected to remain volatile but upward-trending, driven by easing inflation and potential Fed rate cuts. Technology stocks are leading gains, particularly those involved in AI and industrial automation.
European Stocks
In Europe, stocks are likely to face further pressure from weak economic data, impacting overall market performance.
Asian Markets
Asian markets, particularly in China and Japan, will remain subdued as geopolitical and economic uncertainties persist.
Bond Market Trends

1

US Bond Yields
US bond yields are declining as inflation cools, with the 10-year Treasury yield falling to 3.60%.

2

European Bonds
Similar trends are seen in European bond markets, where yields on German Bunds and UK Gilts have also dropped.

3

Market Stability
The bond market is expected to remain stable, supported by low yields and investor demand for safer assets.
Forex and Commodities Update
Forex Movements
The US dollar has strengthened against major currencies, particularly the euro and yen, as investors bet on a more dovish Federal Reserve. However, the euro and yen continue to struggle amid weak economic growth and inflationary concerns in their respective regions.
Oil Prices
Oil prices have declined to $70 per barrel due to weakening demand and geopolitical concerns.
Agricultural Commodities
Agricultural commodities, particularly soybeans and wheat, have seen moderate gains due to supply constraints and the impact of climate change on global crop yields.
Conclusion and Future Outlook
Market Complexity
The global financial markets are grappling with a complex mix of inflation deceleration, geopolitical tensions, and economic slowdowns. While US markets remain optimistic due to falling inflation and potential rate cuts, Europe and Asia are facing greater challenges.
Key Focus Areas
The focus in the coming weeks will be on central bank decisions, inflation data, and geopolitical developments, which will continue to shape market sentiment.
Investor Advice
Investors should remain cautious and nimble, focusing on sectors with growth potential while closely monitoring macroeconomic trends.