On 04 September, 2017 – Global markets declined following North Korea’s nuclear test
US markets were closed for Labour Day.
United States
European stocks lost ground Monday, after North Korea conducted another test of its nuclear capabilities. The Stoxx Europe 600 fell 0.5% and the FTSE 100 index declined 0.4%.
Shares in Asia-focused bank Standard Chartered declined. However, Fresnillo and Randgold Resources surged as gold prices rallied. On the economic front, UK construction activity hit its lowest levels in a year in August. IHS Markit/CIPS said its construction Purchasing Managers’ Index came in at 51.1 compared with an estimate of 51.8.
Asia Pacific
Asian investors moved into safe haven assets on Monday 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, to end the day with a 1.2% decline. The South Korean won slid 0.8% 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 0.9%; Japanese stocks often fall when the yen’s value rises.
The Hang Seng index fell 0.8%, while the China Enterprises Index lost 0.9%. Most sectors fell on Monday, with properties and industrial firms among the biggest losers.
Declines were even smaller in Australia and New Zealand, even as the Trump administration issued its sternest warning yet that a potential military response is on the table.
Looking forward
US
Sept 5
US
Factory orders (Monthly; July)
Europe
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)
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
Global Stock Markets
*Note — all releases are listed in local time.
Source: Fidelity
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