Look Ahead 8/9/23: Japan outlook; French trade balance data; Baker Hughes oil rig count
In today's Look Ahead, we anticipate the release of second-quarter Japanese GDP growth rate figures and trade balance data from France, while oil is under scrutiny with the Baker Hughes oil rig count.
(Video Transcript)
Japan’s growth driven by external demand
Hello, I'm Angeline Ong, and welcome to your Look Ahead to Friday, 8 September 2023. It's looking like quite a quiet end to the week. We've got Japan out with second-quarter (Q2) gross domestic product (GDP) growth rate numbers, final estimates 1.3%, quarter-on-quarter.
Looking at the Nikkei here, because it has had quite a remarkable climb since January. However, hitting that resistance point here at around 34,000, 33,700 is where it's marked there before coming back down again, but it is starting to traverse back to that resistance point.
Japan's economy has been quite an interesting one to watch because it has grown at an annualised clip of 6% in the April to June period from the previous quarter. This marks the third straight quarter of expansion, but not led by domestic demand. This is led by external demand, although recovery from the Covid-19 pandemic still remains key.
The GDP figure for the coming quarter will be more interesting because it also shows through whatever weakness we've seen in terms of exports, particularly with China's reopening, it's still not quite coming through as hoped just yet.
We've got trade balance figures as well from France and industrial production figures. And, from the United States, oil will be key because we have the Baker Hughes oil rig count.
Oil under the spotlight
Of course, oil has been keenly watched by traders and many people who use the IG platform to take a position because there has been an extreme amount of volatility in this space, especially after those moves by Saudi to curb and keep supply and demand offset, given there are so many different changeables in this market.
China's reopening is also key to this market because if we see a recovery and a big bounce back, then we could see the supply picture quickly go to under-supply. And don't forget, we still have those strike issues looming as we head into the winter months. And, of course, the Ukraine and Russia war hasn't gone away.
And that's it for now. For more market-moving news, do tune in to Beat the Street at 1.30pm London time when I give you all the heads-up to the US trading day.
Jeremy Naylor will be on at 7.30am on Early Morning Call to do the same for you ahead of the European market opening. Follow me on IG.com and @AngelineOng on Twitter. This is IGTV.
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