DAILY MARKET NEWS - 10-02-2023

Ariff Azraei

China's population decline is a pressing issue for the country's economy. Citizen’s worries of money and career development among women and the high cost of childbirth, childcare, and education, causes the fertility rate to suffer. To address this, local governments are taking measures to reduce these costs and support childbearing. Meanwhile, the ageing population is set to slow GDP growth as the "death wave" of an older population hinders economic activity drastically especially in Asia that practice close knit family culture. This decline in population is a concerning issue that is not just limited to China but also affects other countries, such as Japan, which is facing an alarmingly low birth rate.
On Thursday, the Dow Jones Industrial Average fell by 0.73%, or 249.13 points. The Nasdaq and S&P 500 also fell, by 1.02% and 0.88%, respectively. Technically, the index is at a pivot, pushed down by strong resistance. 11 sectors under the S&P 500 posted losses, with more job cuts announced across industries even when earnings keep showing positive signs.
Gold finally melted after three consecutive small gains. Prices fell by 0.73% and are now hovering around the 1860 level, with no indication of a recovery or further decline. Russia is said to be dipping into its reserves to cover oil revenue losses, putting pressure on the gold market.
Oil prices loses some gas to sustain their rally after three consecutive days of substantial gains. The price closes 1.02% lower on Thursday, repeating the same melody in other markets. Exports from the Ceyhan terminal have been disrupted due to a catastrophic earthquake in Turkiye, and several operators have declared force majeure in the region.
The US dollar fell 0.27% after initial jobless claims were reported higher after months of a strong labour market. The 10-year minus 2-year Treasury yield has now reached its lowest level since the 1980s, signalling a deep recession in the coming 2 to 3 years.

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