On 02 September, 2015 – Global markets were mixed

Although most stock indices were down in Asia, the declines moderated. Stocks advanced in Europe and the US after sinking the first two days of the week.
United States
US stocks rallied Wednesday after two very negative days. Both the Dow Jones industrials and S&P added 1.8% while the Nasdaq jumped 2.5%. The steep declines in the last two weeks have been tied to broader concerns about global economic growth. Some analysts said it was too early to tell whether Wednesday’s increases were a sign that stocks were close to bottoming out.
US stocks advanced as traders digested the morning’s ADP private employment report which estimated that the US economy added 190,000 private jobs as well as a rosy report on economic activity in the Federal Reserve’s Beige Book. The August non-farm payroll report will be the last major economic data published ahead of the Federal Reserve’s monetary policy setting meeting on September 16 and 17.
The Federal Reserve published its Beige Book in preparation for its FOMC meeting which will be held on September 16 and 17. The Beige Book which was prepared by the Federal Reserve Bank of Boston, portrayed the US economy overall as continuing to expand at a moderate or modest pace in July through mid-August. It suggested certain areas of the economy are relatively strong, including the jobs market, the housing market and construction. But it also pointed to growing obstacles, such as the strong dollar and slowing growth in China. Most notably, the Fed pointed to wage pressures in some regions that it attributed to steady hiring and falling unemployment. The report also pointed to strength in real estate. But the assessment of US factories, which are battling a strong dollar, depressed oil prices.
Gold at the afternoon London fixing was down US$4.55 to US$1,137.75. Copper futures were up 1.0% to US$2.32. WTI spot crude was up 59 US cents to US$46.00. Dated Brent spot crude was up 82 US cents to US$50.38. The US dollar was up against the euro, yen, Swiss franc and the Canadian dollar. It was virtually unchanged against the pound. However, it declined against the Australian dollar. The Dollar Index was virtually unchanged. The yield on US Treasury 30 year bond was up 4 basis points to 2.96% while the yield on the 10 year note added 3 basis points to 2.19%.
Europe
Stocks mostly advanced Wednesday following sharp declines on both Monday and Tuesday. Concerns over China dominated the headlines yesterday, after the nation’s manufacturing data came in weaker than expected. Gains in Europe began to erode in late trading due to weakness in energy stocks. Crude oil prices accelerated to the downside after a US government report showed that US crude oil inventories increased by much more than expected. Early gains were fueled by bargain hunting, following Tuesday’s sharp sell-off. US private sector employment data, which was soft, was also viewed positively ahead of Friday’s jobs report. Investors shifted their focus to tomorrow’s meeting of the European Central Bank. The FTSE was up 0.4%, the SMI edged up 0.1% and both the CAC and DAX added 0.3%.
MAN advanced after the company said its board decided to apply for cancellation of the listing of the shares in the Prime Standard and transfer to a General Standard listing. Both RWE and E.ON retreated. In Paris, Alstom gained on reports that General Electric is poised to win approval in Europe for its purchase of the speed train maker’s energy business. Vivendi gained — the media company reportedly increased its stake in French video platform Dailymotion. Ashtead Group surged after reporting first quarter results. Ryanair climbed after reporting growth in traffic and load factor for August. Glencore sank after the company has opted to pay back US$350 million in bonds next month. ARM Holdings, Merlin Entertainments and Hikma Pharmaceuticals finished higher on broker upgrades. Telefonica dropped on a downgrade.
Asia Pacific
Asian stocks were mixed after Chinese stocks rebounded from an earlier sharp sell-off. However, gains remained muted and most regional markets were down ahead of a report on US private sector jobs later in the global market day and the official comprehensive non-farm payrolls figures on Friday. Friday’s data could influence the Federal Reserve’s decision on whether or not to raise short term interest rates at the highly anticipated policy meeting on September 16 and 17.
Chinese stocks swung between gains and losses before closing off their day’s lows on their last trading day this week. The Shanghai Composite closed down 0.2% after plunging as much as 4.6% in early trading. Risk-taking sentiment improved somewhat after China’s largest brokers pledged to increase the size of their proprietary stock trading to prop up markets. The Hang Seng however, dropped 1.2% to its lowest level since July. Markets will be closed on Thursday and Friday for a holiday.
The Nikkei retreated 0.4% in volatile trading, although a weaker yen helped limit the downside. Energy Explorer Inpex Corp and Japan Petroleum dropped after oil prices fell below $45 a barrel. Mazda, Toshiba and Mitsui Engineering & Shipbuilding declined. Daio Paper slumped after announcing it would raise funds through convertible bonds. Hankyu Hanshin Holdings jumped on a brokerage upgrade. Fanuc, Central Japan Railway, Japan Tobacco, Mitsubishi Logistics and Sumitomo Dainippon Pharma all advanced.
The S&P/ASX was up 0.1% while the All Ordinaries was virtually unchanged. The indices were buoyed by reports of renewed Chinese government efforts to bolster share prices heading into the holiday weekend. Second quarter gross domestic product was up just 0.2% on the quarter and 2.0% from a year ago. The sluggish growth was attributed to the mining and resources sector. The big four banks advanced. With iron ore prices holding steady near a two month high, Rio Tinto and Fortescue Metals Group advanced. The Kospi edged up 0.1% while the Sensex retreated 0.9%.
Global Stock Market Recap

Please remember, the value of investments and the income from them can do down as well as up. Funds that invest in overseas markets may be subject to currency fluctuations. Investments in small and emerging markets can be more volatile than other overseas markets. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only.
Looking forward*
Thursday – Australia posts international trade and retail sales for July. August composite PMIs will be released for Japan, France, Germany and the Eurozone. Services PMIs will be released for India, UK and US. France posts second quarter ILO unemployment. The Eurozone posts July retail sales. The European Central Bank announces its monetary policy decision. The announcement is followed by ECB President Mario Draghi’s press conference. Canada and the US post July international trade balances. August ISM nonmanufacturing PMI is released. Weekly jobless claims, money supply and Fed balance sheet are also on tap.
*Note — all releases are listed in local time.