Top 5 Things to Know in the Market on Monday

Here are the top five things you need to know in financial markets on Monday, August 8:

1. China Trade Data Disappoints
In a rocky start to the third quarter, China’s trade data for July revealed a surplus of $52.31 billion, which surpassed expectations of $47.6 billion. However, exports fell by 4.4%, worse than the forecasted decline of 3.0%, and imports plunged by 12.5%, significantly exceeding the anticipated drop of 7.0%. Despite this disappointing data, experts suggest it may prompt the Chinese government and central bank to consider further economic easing measures.

2. Gold Slumps to 1-Week Low Amid Fed Rate Hike Bets
Gold prices fell amid renewed expectations of a U.S. interest rate hike later this year. On the Comex division of the New York Mercantile Exchange, December delivery gold dropped 0.62% to $1,336.10. Positive signals from the U.S. economy have fueled speculation about a rate increase, with current futures pricing in a 15% chance of a hike by September and around 43.4% for December. A stronger U.S. dollar typically weighs on gold, making it more expensive for holders of other currencies.

3. Oil Jumps 1% on Renewed Talk of Freezing Production
Oil prices rose as discussions surrounding a potential output freeze among exporters revived market optimism, despite ongoing uncertainties. Several OPEC members are interested in establishing new production limits this fall to stabilize the market. However, Russian Energy Minister Alexander Novak has indicated that Russia has not yet committed to a production freeze but remains open to discussions. Oil prices surged 1.36% to $42.37 while Brent crude increased by 1.15% to $44.78.

4. Global Stocks Broadly Higher
Global stock markets rallied, buoyed by a positive U.S. market performance at the end of last week, even while mixed trade data from China and Japan weighed on sentiment. U.S. futures indicated a higher opening on Monday, with major indices showing modest gains. As of early morning trading, the blue-chip index was up 39 points, or 0.21%, while the tech-focused index added 4 points, or 0.20%.

5. BoJ Divided on Easing Effectiveness, as Abe Plans Extra Budget
Recent discussions within the Bank of Japan revealed differing opinions among officials, with some advocating for ongoing unlimited easing and others believing the central bank may have done enough. This comes as Japanese Prime Minister Shinzo Abe announced plans for an extra budget in the fall following the recent approval of a supplemental budget. In related news, Japanese Emperor Akihito expressed concerns about his health, raising speculation about his potential abdication.