Weekly Market Update - 1 May 2023

Made In China

China's factories are grappling with weaker global demand. Purchasing managers’ indexes for April denoted an unexpected slowdown in factory activity, the first time the indicator falls below 50 this year. Sub-indexes for new orders, new export orders and manufacturing employment were all in contraction territory. China’s economic recovery risks losing steam, analysts said, with the figures adding pressure on the government to increase policy support. The Communist Party’s Politburo — the top decision-making body led by President Xi Jinping — recently said domestic demand is still insufficient. That said, evidence consumers are traveling across the country and splurging over the May holidays may give them some breathing room.

Source: Bloomberg

Amazon Earnings

Amazon.com reported quarterly profit that topped estimates as cost cuts and strong sales in its cloud-computing division helped weather an uncertain economy. But the good news was short-lived for investors when, on a conference call after earnings were announced, executives revealed that revenue growth in cloud computing had slowed in April. An earlier stock jump of almost 12% was wiped out. The world’s largest online retailer has been working for more than a year to streamline its businesses to adjust to slowing sales growth. The company is cutting 27,000 jobs, with the latest round of layoffs landing mostly on employees of the cloud unit.

Source: Bloomberg

Singapore Property Taxes

Singapore is raising property taxes in a bid to cool the housing market, which has defied the slump afflicting other countries. The government is doubling stamp duty to 60% for foreigners buying a home in the city, while it raises the tax to 20% from 17% for Singapore citizens buying a second home. Singapore’s property sector has remained buoyant even as countries elsewhere face slowdowns due to soaring interest rates and inflation. Home prices could rise as much as 5% in 2023 after gaining 3.2% in the first quarter, due to higher rents and favorable supply-demand dynamics, according to Bloomberg Intelligence.

Source: Bloomberg