US and UK markets rose on expectations that weak economic data would lead central banks to retain their accommodative monetary policies. Asian markets slid following North Korea’s nuclear test.
United States
US equities finished the week and the first trading day of September in positive territory. Investors expect the US Federal Reserve will not raise borrowing costs further in 2017 given the weaker-than-expected rise in August nonfarm payrolls.
The Dow Jones Industrial Average rose or 0.2% on the day and 0.8% on the week. The S&P 500 was up 0.2% on the day and 1.4% on the week. The technology-laden Nasdaq Composite Index rose 0.1% on Friday and 2.7% on the week.
Trading activity was light as traders prepared for the three-day Labor Day weekend.
Shares in Lululemon Athletica surged after the athletic-apparel maker raised its guidance following a strong performance in the latest quarter. Enterprise-storage company Nutanix advanced after posting better-than-expected quarterly results.
On the economic front, the US economy added 156,000 jobs in August, below the 170,000 expected by analysts. The unemployment rate stood at 4.4% in August, below expectations of 4.3% and up 0.1 percentage point from July. In other economic data, the closely watched Institute for Supply Management manufacturing index jumped to a six-year high in August. The Commerce Department said that construction spending fell 0.6% in July, but was up 1.8% year-over-year. The University of Michigan’s consumer sentiment for August came in at 96.8 versus a preliminary reading of 97.6.
Europe
European stocks ended higher for a third straight session on Friday, boosted by reports that the European Central Bank is likely to wait until December to unveil a plan to taper its asset purchases. The Stoxx Europe 600 index ended 0.6% higher on the day and week. Germany’s DAX 30 index rallied 0.7% on the day, while the UK’s FTSE 100 index rose 0.1% on the day.
Shares in Gemalto declined after the Dutch digital security company reported a loss in the first half. French media conglomerate Vivendi rallied after it confirmed its outlook for the year and reported better-than-forecast core-profit growth. Shares in Airbus rose after Bank of America Merrill Lynch lifted the French aerospace giant to neutral from outperform.
On the economic front, Europe’s final manufacturing purchasing managers index for August came in line with the flash estimate at 57.4, up from 56.6 in July. The UK’s manufacturing Purchasing Managers’ Index unexpectedly jumped to a four-month high at 56.9, up from a revised 55.3 in July.
Asia Pacific
On Monday, Asian investors moved into safe haven assets following North Korea’s largest-ever nuclear test on Sunday. South Korea’s Kospi fell as much as 1.7% at the start of the trading day, but started to strengthen almost immediately. The South Korean won slid 1% against the US dollar.
The yen, which gained nearly 1% at the start of trading to ¥109.30 per dollar, eased back to ¥109.85. That helped limit the Nikkei Stock Average’s decline to 0.5%; Japanese stocks often fall when the yen’s value rises.
Declines were even smaller in Australia, which slid 0.26%, and New Zealand, which fell -0.16%.
Looking forward

US

 

 

 

 

Sept 5

US

Factory orders (Monthly; July)

Sept 6

US

Balance of trade (July)

 

 

Exports and imports (July)

 

 

Markit Composite Purchasing Managers’ Index (August)

 

 

Markit Services Purchasing Managers’ Index (August)

 

 

ISM Non-Manufacturing Business Activity (August)

 

 

ISM Non-Manufacturing Purchasing Managers’ Index (August)

Sept 7

US

Continuing Jobless Claims (August 26)

Initial Jobless Claims (September 02)

Europe

 

 

Sept 4

UK

Construction Purchasing Managers’ Index (August)

EU

Producer Price Index (monthly and yearly; July)

Consumption of Manufactured Goods (April)

Sept 5

EU

Markit Composite Purchasing Managers’ Index (August)

 

 

Markit Services Purchasing Managers’ Index (August)

 

 

Retail sales (monthly, yearly; July)

 

UK

New car sales (Yearly; August)

 

 

Markit/CIPS UK Services Purchasing Managers’ Index (August)

Sept 6

EU

Retail Purchasing Managers’ Index (August)

Sept 7

EU

GDP Growth Rate (Yearly and Quarterly; second quarter; third estimate)

 

 

European Central Bank interest rate decision

 

 

European Central Bank Press Conference

Asia Pacific

Sept 5

Japan

Nikkei Services Purchasing Managers’ Index (August)

 

Australia

Current account (Q2)

 

China

Caixin Composite Purchasing Managers’ Index (August)

 

 

Caixin Services Purchasing Managers’ Index (August)

Australia

Reserve Bank of Australia interest rate decision

Sept 6

Australia

GDP Final Consumption (quarterly data; second quarter)

GDP Growth Rate (quarterly data; second quarter)

 

 

GDP Capital Expenditure (quarterly data; second quarter)

 

Sept 7

Japan

Foreign Exchange Reserves (August)

 

 

 

Stock investment by foreigners (August)

 

 

Australia

Balance of Trade (July)

 

 

 

Exports and Imports (July)

 

 

 

Retail Sales (Monthly; July)

 

Sept 8

Japan

GDP Data (second quarter)

 

 

 

Bank Lending (Yearly; August)

 

Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

Fidelity disclaimer:

The objective of this page is to present users with objective news, information, data and guidance on personal finance topics drawn from a diverse collection of sources including affiliated and non-affiliated financial services publications. Content is not intended to provide tax, legal, insurance or investment advice and should not be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security or investment by any Fidelity entity or any third-party.

Jesmond Mizzi Financial Advisors Disclaimer:

This article, does not intend to give investment advice and the contents therein should not be construed as such. Jesmond Mizzi Financial Advisors Limited is licensed to conduct investment services by the MFSA and is a Member Firm of the Malta Stock Exchange. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email [email protected]