**Apple shares fall after reports of potential iPhone ban in China**
Apple shares experienced a decline of over 2% following a report by Bloomberg News stating that China is considering extending its ban on iPhone usage to state-owned corporations. This comes just a day after The Wall Street Journal reported that China is also planning to prohibit iPhone usage in government agencies.
If this ban were to be implemented, it would have significant implications for Apple’s business in China, which is currently one of its largest markets. The move by the Chinese government is seen as a response to the ongoing trade tensions between the US and China.
**Bank of America predicts outperformance for equal-weighted S&P 500**
According to Bank of America’s Savita Subramanian, the bank expects the equal-weighted version of the S&P 500 to outperform the cap-weighted version of the index. Subramanian provides several reasons for this expectation, including a trough in profit growth during the second quarter of the year, historical inexpensive value stocks, and a regime model that shifted to favoring deep value.
This prediction by Bank of America highlights the potential for a shift in investment strategies as investors become more price sensitive and seek out undervalued stocks.
**China’s trade results better than expected in August**
China’s trade data for August revealed that both exports and imports declined less than economists had predicted. Exports fell by 8.8% year-on-year, while imports declined by 7.3%. Economists polled by Reuters had expected a steeper fall of 9.2% in exports and 9% in imports.
The country’s trade balance for August came in at $68.36 billion, lower than the $80.6 billion recorded in June and below the $73.9 billion expected by economists. These trade results suggest that the impact of the ongoing trade dispute with the US may be less severe than anticipated.
**Australia’s July trade surplus lower than expected**
Australia’s trade surplus for July was reported to be 8.04 billion Australian dollars ($7 billion), which is almost a third lower than June’s revised figure. Economists polled by Reuters had expected a surplus of AU$10 billion. The decline in the trade surplus is attributed to a 2% fall in exports, primarily driven by a decrease in non-monetary gold exports, and a 2.5% increase in imports, led by non-industrial transport equipment.
This lower-than-expected trade surplus indicates potential challenges for Australia’s economy, particularly in the export sector.
**India’s consumer market predicted to become third largest in the world**
A report by BMI predicts that India’s consumer market will become the world’s third largest by 2027, driven by an increase in middle- to high-income households. The report forecasts that India’s household spending per capita will grow at a faster rate compared to other developing Asian economies like Indonesia, the Philippines, and Thailand.
BMI estimates that India’s household spending will surpass $3 trillion by 2027, with a projected 25.8% of Indian households reaching $10,000 in annual disposable income. The majority of these households are expected to be located in economic centers such as New Delhi, Mumbai, and Bengaluru.
This growth in India’s consumer market presents opportunities for retailers to target their key markets and expand their presence in urban areas.
**West Texas crude oil futures reach highest price for the year**
October West Texas Intermediate (WTI) crude oil contracts reached an intraday price of $88.08 per barrel, the highest since November 15, 2022. November Brent contracts, the global benchmark, closed at $90.60 per barrel. These increases in oil prices reflect a rise of 9.1% and 5.5% for WTI and Brent, respectively, so far in 2023.
Additionally, September RBOB gasoline futures rose 0.80% to $2.6014 per gallon, representing a 5.8% increase for the year-to-date.
These price increases in crude oil and gasoline futures suggest upward pressure on energy costs and may impact consumers and businesses dependent on these commodities.
**Stock futures remain stable as focus turns to Federal Reserve**
Stock futures showed little change as Wall Street shifts its attention to the Federal Reserve’s future plans for benchmark interest rates. Futures tied to the Dow Jones Industrial Average fell slightly by 9 points, or 0.03%. S&P 500 futures and Nasdaq futures also experienced minor declines of 0.02% and 0.06%, respectively.
Investors are closely monitoring the Federal Reserve’s decisions and statements regarding interest rates, as they can have a significant impact on the overall market sentiment.