Chinese markets extend sell-off. US closed for Labor Day

Monday, September 07, 2015

US markets are closed today for Labor Day, so we expect thin trading volumes across the global equity and commodity markets. Asian equity markets were mixed overnight. The Nikkei index edged higher nearly 0.4% towards 17,860 following solid economic data. Japan’s Leading index was reported at 104.9 y/y in July in line with expectations, while Coincident Index was reported at 112.2 during the same period.

However, Chinese equity markets continue to remain under pressure as the Hang Seng Index and Shanghai Composite Index retreated 0.9% and 2.5%, respectively. General Motors reported that Chinese sales declined strongly for the fourth consecutive time in five months, verifying persistent concerns regarding a slowdown in the world’s largest auto market. On the other hand, the People's Bank of China Governor Zhou Xiaochuan told G20 central bankers and finance ministers over the weekend that the turmoil in China's stock market is approaching an end.

Hang Seng index retreats towards 20,600.

HSI Index (Hong Kong Hang Seng I 2015-09-07 09-09-55 

Germany’s industrial production increased 0.7% m/m in July, missing analysts’ expectations of a 1.1% rise. However, the DAX index extended recent gains and climbed higher by 1.3% in early trade, leading the gains across the European equity markets. The CAC, IBEX and London equity benchmark indices gained between 1% and 1.4% this morning, while the euro edged higher and hovered around 1.1150 against the USD.  

At the latest G20 meeting in Ankara, world leaders and global finance ministers attempted to be optimistic regarding the global economic growth. The USD index slid slightly lower towards 96.0 against a basket of currencies, providing some well-needed support to metal prices. Copper climbed higher this morning towards $5,200 and aluminium gained nearly 1% above $1,600.   

Today, market participants will be keeping an eye on the release of Eurozone’s Sentix Investor confidence for direction.

Events for today:

0600

JP

Jul

Leading Index

0700

DE

Jul

Industrial Production

0930

EZ

Sep

Sentix Investor Confidence Index

 

All times UK Local Time

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