JOLTs data sent US shares higher on prospects of soft landing.

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☘️ The equity market rose on Tuesday due to weak JOLTs data, which shows signs of a weaker labour market. This is good news as investors are pricing less likely that the Fed will be aggressive on rate hikes. The Fed got what it wished for a weakening labour market that hopefully helped tame inflation.

Stocks cheered on the data release and posted another splendid recovery as we wrap up a volatile August month soon.

☘️Regional banks may soon face tougher regulation as FDIC will likely recommend banks with $100 billion in assets to tap into the debt market for funding. This will reduce their dependence on deposits as FDIC seeks to reduce the cost of its insurance fund given the previous heightened risk of the sector-wide contagion meltdown.

Banks are now also facing a new headwind as signs of a slowing economy are becoming more prominent and surfacing in some economic data, although the macro environment remains stable.

☘️Chinese stocks have a robust second day of the week as Beijing introduced more support measures, including stimulus initiatives to beef up the capital markets. The good news rolls into major Chinese ADRs such as Alibaba. Investors welcome the move by the Chinese government, but they do not cast away the persistent gloom over the Chinese economy.

The pro-stock moves, such as the reduction of stamp duty on securities transactions, help to lift up sentiments in a fragile environment, but such short-term stimulus will require heavy lifting from longer structural fiscal stimulus. Until then, the recovery will be a bumpy one.

☘️Bitcoin roared back into life after Grayscale Investments won a case against SEC where a federal court believed that SEC had not been consistent when it disapproved Grayscale from converting its Bitcoin Trust.

This sent major cryptocurrency counters such as MSTR, MARA and RIOT to recover sharply from the past week’s losses. It is a pivotal point as the saga of creating the first Bitcoin ETF is now alive!

☘️Today will be yet another major economic data release day. At 8:30 p.m., a string of data will hit the wire.

First on the list is the ADP Nonfarm Employment. Then, the GDP data will be released concurrently and 10 pm will usher in the Pending Home Sales.

It is 30 August, Wednesday, 8.50 am in Singapore and 8.50 pm in New York. The market is now in a risk-on lively mood again, but we remain cautious in threading in a swinging market as we try to wrap up strong for the month.

Have a splendid day at work and in school.

As always, Cheers,

Pika Nat.🧃