Global stock markets are opening the week in a mostly weaker mood. Trading on Wall Street will be closed today due to the Labor Day holiday in the United States. After a mostly weak session in Asia and a disappointing reading from China's industry, investors' attention shifts to Europe, where we will learn industry PMI readings for August
China's benchmark Hang Seng posted a near -1.8% sell-off, while the mainland CSI slid -1.2% after the release of China's manufacturing PMI turned out to be the weakest in 6 months (49.1 vs. 49.4 in July); this is also the 4th consecutive month of decline in the industrial PMI. Analysts had expected a slight rebound, to 49.5.
On the other hand, the non-industrial PMI reading rose from 50.2 to 50.3 in July, and according to Caixin, the manufacturing PMI was 50.4 vs. 50 forecast and 49.8 the previous month; however, investors focused their attention on the official, weaker data. Nevertheless, the market read the numbers as disappointing and maintaining macro uncertainty.
Developer New World Development's financial forecast plunged in the index; the company expects about $2.6 billion in losses this year (the first expected loss in 20 years). In the result NWD stock price dropped almost -14% today, and a broader sell-off across the Chinese developer shares weighed on the index
Weak sentiments across the China economy probably pressured oil market sentiments; Brent Crude loses -0.8% at the beginning of the week, dropping to $76.5 per barrell
Australia's ASX rose nearly 0.2%, while the Nikkei and Topix benchmarks, as well as South Korea's KOSPI, closed the session at levels close to the session-open. Japan's manufacturing PMI came in at 49.8 in August, up from 49.1 in and above 49.5 exp. by analysts
Building permits in Australia rose 10.4% m/m versus 2.8% forecast, following a -6.5% decline in July. Reported business inventories rose 0.1% m/m, a -0.1% decline was expected, after a 1.3% increase previously.
Gross margins of Australian businesses fell -5.3% y/y, compared to 0% forecasts and a -2.4% decline in the previous month.
Indian Sensex rose 0.3% to new all-time-high, while August manufacturing PMI from India came in 57.5 vs 58.1 exp. and 57.9 in July
European indices futures are trading down low single digits today, along with U.S. index futures. Dutch retail sales rose 3.6% vs. -2.8% drop previously
EURUSD and USDJPY gain 0.07% and 0.04%, respectively. Silver loses nearly 1.5% and gold around 0.3%. Sentiment of the cryptocurrency market remains weak; Bitcoin loses more than -1% and fell around $57k; Ethereum loses -1.5% and hovers around $2450