Poor Chinese data weighs on market sentiment

Wednesday, April 23, 2014

The US equity markets extended gains yesterday, supported by robust US economic data. The Dow Jones index climbed higher, ending 65.12 points higher (+0.4%), while the S&P 500 and the Nasdaq have also extended gains by 0.41% and 0.97%, respectively. Today, the release of the Markit Manufacturing PMI flash as well as new home sales data could add further momentum to the markets.

 

China’s manufacturing sector shrank for fourth consecutive month in April. China’s HSBC Manufacturing PMI flash was reported at 48.3 in April, but was in line with analysts’ estimates. The Hang Seng index posted heavy losses following the release of the disappointing figures, ending lower by 185.00 points (-0.8%).

Hang Seng Index

HSI Index (Hong Kong Hang Seng I 2014-04-23 08-51-57

 

Chinese Yuan over 3 years

CNY Curncy (China Renminbi Spot ) 2014-04-23 08-53-39

European equity markets opened today’s session slightly lower in early trade, following poor manufacturing Chinese data, which weighed on market sentiment. The London benchmark index has managed to hold in positive territory in early trade, ahead of the release of BOE minutes.

 

Oil: Brent front month futures held above $109 per barrel. The escalating crisis in Ukraine continues to provide support to the oil market. The release of the weekly EIA oil inventories report could give further signs regarding the levels of the US oil inventories.

 

Events for today:

 

0200

CN

Apr

Manufacturing PMI

0830

DE

Apr

Markit Manufacturing Flash

0900

EZ

Apr

Markit Manufacturing Flash

0930

UK

Apr

BOE minutes

0930

UK

Mar

PSNCR & PSNB

1445

US

Apr

Markit Manufacturing Flash

1500

US

Mar

New Homes Sales

1530

US

w/e

EIA Energy Stocks

 

All times UK Local Time

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