Asian equity markets report sharp losses

Tuesday, September 30, 2014

Asian equity markets extended losses overnight. The Hang Seng declined sharply by 240 points (-1.0%) to breach below 23,000, due to political uncertainty in the country and disappointing Chinese economic data. HSBC China manufacturing PMI declined to 50.2 in September compared to 50.5 in August, missing analysts’ expectation of 50.5. The Nikkei index followed the downtrend and retreated by 135 points (-0.85%) towards 16,170.

Hang Seng Index

HSI Index (Hong Kong Hang Seng I 2014-09-30 08-54-15

European equity markets rebounded in early trade this morning. The CAC and IBEX indices edged higher by 0.45% and 0.55%, respectively, after yesterday’s sharp selloff in the equity markets. Investors will be keeping an eye on the release of Eurozone’s inflation and unemployment data as well as UK GDP final for Q2 2014.  

Energy: Brent front month futures held support near $96 yesterday and edged higher in early trade this morning to trade around $97 per barrel. The WTI front month contract rallied strongly yesterday to end the session at $94.57 per barrel. Furthermore, the US refinery maintenance season is approaching in the next few coming weeks. Gasoline prices have climbed higher near 6% in the last two weeks because of refinery maintenance shutdowns.  

Brent front month futures 

COX4 Comdty (BRENT CRUDE FUTR  N 2014-09-30 08-56-53

Gold steadied above a 9-month low at $1215/ounce as risk appetite remained limited due to the political unrest in Hong Kong. However, the yellow metal has been heading to post its sharpest monthly loss since June 2013 as a strong rally of the US dollar hurt its appeal. Silver held around $17.50 in early trade this morning.

XAU- Gold Spot monthly chart

XAU Curncy (Gold Spot   $_Oz )  M 2014-09-30 08-55-53

 

Events for today: 

 

0245

CN

Sep

Manufacturing PMI

0855

DE

Sep

Unemployment

0930

UK

Q2

GDP Final

1000

EZ

Sep

Inflation Flash

1000

EZ

Aug

Unemployment

1445

US

Sep

Chicago PMI

1500

US

Sep

Consumer Confidence

1530

US

Sep

Dallas Fed

 

All times UK Local Time

Topics: GDP, Equities, Asia, Gold, Europe, Brent, UK
More from: Myrto Sokou