Iron Ore plunges below $80/tonne

Tuesday, September 23, 2014

China’s equity markets extended declines overnight despite the fairly robust Chinese economic data. HSBC China manufacturing PMI rose to 50.5 in September compared to 50.2 in August beating analysts’ expectations of 50.0. However, the Hang Seng index retreated more than 70 points (-0.3%) below 23,900 following a bearish tone across the US equities. Japanese markets remained closed due to a public holiday.

Hang Seng Index

HSI Index (Hong Kong Hang Seng I 2014-09-23 08-49-41

Australia’s mining sector halved a 1.5% loss to 0.7% following sharp declines in the iron ore market, according to Financial Times. Iron ore, which remains key export of the Australian economy, extended its year-to-date price drop to more than 40% overnight.

Iron Ore China 62% 2nd Month Swap - SGX

OREXIO2M Index (SGX Asiaclear Ir 2014-09-23 08-55-19

European equity markets extended losses in early trading this morning, tracking declines in the US and Asian equity markets. The CAC, DAX, IBEX and London equity benchmark have retreated between 0.6% and 0.8% in early trading, while the euro has slightly rebounded to retest 1.2855. The release of the Markit manufacturing and services PMI data for September from Eurozone, as well as Public sector net cash requirements data (PSNCR) in the UK could provide further direction to today’s trading session.  

EURUSD Spot

EURUSD Curncy (EUR-USD X-RATE)   2014-09-23 08-51-51

Energy: Brent front month futures rebounded in early trading this morning towards $97.3 per barrel after hitting a low at $96.38 yesterday following disappointing US economic data. The WTI front month contract has also rebounded above $91 per barrel. The release of the US monthly home prices as well as Markit manufacturing PMI and Richmond Fed data could give further signs about the US economic prospects.   

Brent Front Month futures

COX4 Comdty (BRENT CRUDE FUTR  N 2014-09-23 08-52-38

 

Events for today:

 

0245

CN

Sep

HSBC Manufacturing PMI

0830

DE

Sep

Markit Mfg & Services PMI

0900

EZ

Sep

Markit Mfg & Services PMI

0930

UK

Aug

PSNCR & PSNB

1400

US

Jul

Monthly Home Prices

1445

US

Sep

Markit Manufacturing PMI

1500

US

Sep

Richmond Fed

 

All times UK Local Time

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