Morning Note: A round-up of market news.
Market News
The US market will be closed today for the Labor Day holiday, ahead of a busy week for conferences with over 30 events and a heavy macro calendar that includes ISM Manufacturing and Nonfarm Payrolls. This follows the release last Friday of the PCE price index, the Fed’s favoured inflation indicator, which came in at 2.6% vs 2.7% expected.
In Asia this morning, equities kicked off the week on a subdued note – Nikkei 225 (+0.1%); Hang Seng (-1.8%); Shanghai Composite (-1.0%) – following weak Chinese data over the weekend. Caixin manufacturing PMI rose to 50.4 in August. The new export orders sub-index fell below 50 for the first time this year, hitting the lowest since December 2023, mainly dragged down by the decline in external demand for consumer goods. The residential housing slump deepened in August, as expectations of a further drop in new-home prices hampered the country’s efforts to cushion the downturn.
The FTSE 100 is currently little changed at 8,374, while Sterling buys $1.3140 and €1.1877. Rightmove is trading 24% higher this morning following confirmation that REA, the Australia-listed multinational digital advertising business specialising in property, is considering a possible cash and share offer.
China warned Japan of severe economic retaliation if Tokyo further restricts sales and servicing of chipmaking equipment to Chinese firms, people familiar said.
The oil price fell below $77 a barrel amid a lack of major geopolitical escalations over the weekend coupled with the weak economic data out of China. Iron ore slipped below $100/ton, while gold trades at $2,499 an ounce.
In Germany Olaf Scholz’s ruling coalition was crushed in two regional elections by populist parties, a blow to a deeply unpopular government. The far-right AfD is poised to win a state ballot for the first time.
Source: Bloomberg