- Global stock markets are opening the week in a mostly weaker mood. Trading on Wall Street will be closed today due to the Labor Day holiday in the United States. After a mostly weak session in Asia and a disappointing reading from China’s industry, investors’ attention shifts to Europe, where we will learn industry PMI readings for August
- China’s benchmark Hang Seng posted a near -1.8% sell-off, while the mainland CSI slid -1.2% after the release of China’s manufacturing PMI turned out to be the weakest in 6 months (49.1 vs. 49.4 in July); this is also the 4th consecutive month of decline in the industrial PMI. Analysts had expected a slight rebound, to 49.5.
- On the other hand, the non-industrial PMI reading rose from 50.2 to 50.3 in July, and according to Caixin, the manufacturing PMI was 50.4 vs. 50 forecast and 49.8 the previous month; however, investors focused their attention on the official, weaker data. Nevertheless, the market read the numbers as disappointing and maintaining macro uncertainty.
- Developer New World Development’s financial forecast plunged in the index; the company expects about $2.6 billion in losses this year (the first expected loss in 20 years). In the result NWD stock price dropped almost -14% today, and a broader sell-off across the Chinese developer shares weighed on the index
- Weak sentiments across the China economy probably pressured oil market sentiments; Brent Crude loses -0.8% at the beginning of the week, dropping to $76.5 per barrell
- Australia’s ASX rose nearly 0.2%, while the Nikkei and Topix benchmarks, as well as South Korea’s KOSPI, closed the session at levels close to the session-open. Japan’s manufacturing PMI came in at 49.8 in August, up from 49.1 in and above 49.5 exp. by analysts
- Building permits in Australia rose 10.4% m/m versus 2.8% forecast, following a -6.5% decline in July. Reported business inventories rose 0.1% m/m, a -0.1% decline was expected, after a 1.3% increase previously.
- Gross margins of Australian businesses fell -5.3% y/y, compared to 0% forecasts and a -2.4% decline in the previous month.
- Indian Sensex rose 0.3% to new all-time-high, while August manufacturing PMI from India came in 57.5 vs 58.1 exp. and 57.9 in July
- European indices futures are trading down low single digits today, along with U.S. index futures. Dutch retail sales rose 3.6% vs. -2.8% drop previously
- EURUSD and USDJPY gain 0.07% and 0.04%, respectively. Silver loses nearly 1.5% and gold around 0.3%. Sentiment of the cryptocurrency market remains weak; Bitcoin loses more than -1% and fell around $57k; Ethereum loses -1.5% and hovers around $2450
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