On 11 September, 2015 – European markets fell on uncertainty ahead of Chinese economic data releases

Most indices retreated Friday as investors focused on the upcoming Federal Reserve announcement on September 17.
United States
Stocks advanced in choppy trading for a second day. The gains on the day further offset Wednesday’s losses. The Dow Jones industrials were up 0.6%, the S&P added 0.4% and the Nasdaq gained 0.5%. On the week, both the Dow and S&P were up 2.1% while the Nasdaq was 3.0% higher.
The lackluster performance seen for much of the session came as traders looked ahead to the Federal Reserve’s monetary policy meeting scheduled for September 16 and 17. Analysts are split on whether the FOMC will announce an increase in interest rates. While upbeat economic data point to the first rate increase in nine years, recent market volatility and concerns about developing economies may keep the Fed on hold. Uncertainty over the Fed’s timing has kept investors on edge.
Kroger gained after reporting earnings that beat analysts’ estimates. Gilead advanced after the company’s US$10 billion debt offering fueled speculation it was planning a big acquisition. UnitedHealth Group also gained. Zumiez declined after the sports apparel and accessories maker forecast third quarter sales and profit below estimates. Apple was higher on the day. Energy companies slumped as oil prices declined. Hess and Transocean retreated. Marvell Technology Group tumbled after disclosing an internal investigation of its accounting. Homebuilders Lennar and PulteGroup advanced. Best Buy, McDonald’s and Starbucks also rallied.
Market turmoil took a toll on consumer sentiment, which declined in a preliminary September reading to the lowest level in year. According to the survey, Americans anticipated a weaker economy in face of a global slowdown and turbulent financial markets. A separate report showed wholesale prices were little changed in August, restrained by lower fuel costs.
Gold at the afternoon London fixing was down US$8.25 to US$1,101.25. Copper futures were up 0.3% to US$2.45. WTI spot crude was down US$1.29 to US$44.63. Dated Brent spot crude was down 75 US cents to US$48.14. The US dollar was up against the pound and the Canadian dollar. It was virtually unchanged against the yen. However, it declined against the euro, Australian dollar and the Swiss franc. The Dollar Index was down 0.4%. The yield on US Treasury 30 year bond was down 4 basis points to 2.95% while the yield on the 10 year note slipped 3 basis points to 2.19%.
Europe
Stocks retreated across Europe Friday. The pullback was attributed to investor uncertainty ahead of the release of Chinese economic data over the weekend and the Federal Reserve meeting next week. The FTSE was down 0.6%, the CAC retreated 1.0%, the DAX lost 0.9% and the SMI slipped 0.1%. However, all advanced on the week. The FTSE was up 1.2%, the CAC gained 0.6%, the DAX added 0.9% and the SMI was 1.4% higher on the week.
Merck declined after it said that it plans to submit its investigational treatment Cladribine Tablets for the treatment of relapsing multiple sclerosis for registration in Europe. Both E.ON and RWE were down as were Technip and Total. Orange and Alcatel-Lucent also retreated. Rio Tinto advanced on a broker upgrade as did Kingfisher. Wm Morrison Supermarkets, J Sainsbury and Tesco declined. Telecommunications firm TeliaSonera and telecom company Telenor announced the withdrawal of the proposed merger of their Danish operations. Both companies declined. Taylor Wimpey and British Land Company were down.
Asia Pacific
Asian stocks ended Friday’s session on a lackluster note, as lingering uncertainty prior to the Federal Reserve’s meeting Wednesday and Thursday tempered positive sentiment that generated from overnight gains in US stocks, recovery in global oil prices and further signs of stability in Chinese stock markets.
The Shanghai Composite inched up 0.1% as investors awaited retail sales, industrial output and fixed asset investment figures due out this weekend. The data were released on Sunday. Factory production and fixed asset investment in China were both weaker than expected — a month when Beijing temporarily closed some factories ahead of a high profile military parade. The data pointed to continued weakness across large swaths of the economy, heaping more pressure on the government to seek to further stimulate activity. China’s industrial production grew a less than expected 6.1% on the year. Retail sales were up by a better than expected 10.8% on the year, accelerating from a 10.5% increase in July. The Hang Seng was down 0.3%. On the week, the Shanghai Composite and Hang Seng added 1.3% and 3.2% respectively.
The Nikkei edged down 0.2% as investors remained a bit wary ahead of the Bank of Japan’s monetary policy board meeting scheduled for Monday and Tuesday and the Federal Reserve’s on Wednesday and Thursday. The index gained 2.6% on the week. Nikon, Fanuc, Tokyo Electron and Mitsubishi Electric declined. Toshiba retreated on a Nikkei report that the Securities and Exchange Surveillance Commission is preparing to launch a probe into accounting irregularities at the troubled conglomerate. Softbank also was down. Fast Retailing and realty firm Mitsubishi Estate advanced as did Mitsubishi UFJ Financial and Nomura Holdings.
The S&P/ASX lost 0.5% while the All Ordinaries was 0.4% lower after Goldman Sachs warned that Australia risks falling into a recession. Commonwealth was placed in a trading halt pending a capital raising announcement. ANZ and Westpac were lower while NAB closed marginally higher. Miners were mixed. The S&P/ASX added 0.7% on the week while the All Ordinaries was 0.8% higher.
The Kospi dropped 1.1% after the Bank of Korea held its key interest rate unchanged for the third straight month amid rising growth uncertainties and heightened volatility in the global markets. The index was 2.9% higher on the week. The Sensex was virtually unchanged on the day and up 1.6% for the week.
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*
Monday — India posts August WPI and CPI. The Eurozone reports July industrial production.
Tuesday — The Reserve Bank of Australia publishes minutes from its latest monetary policy meeting. The UK reports August consumer and producer prices. The Eurozone reports July merchandise trade balance. In the US, the September Empire State manufacturing survey, August retail sales and industrial production will be released along with July business inventories.
Wednesday — The Eurozone releases the final August harmonized index of consumer prices. The UK reports August labour market data. In the US, August consumer prices, September housing market index and July Treasury international capital will be released.
Thursday — Japan posts August merchandise trade. The Swiss National Bank publishes its quarterly monetary policy assessment. The UK releases August retail sales. In the US, August housing starts along with weekly jobless claims, money supply and Fed balance sheet will be released. The Federal Reserve will announce its monetary policy decision. It will also publish its latest forecasts. Chair Janet Yellen will hold her quarterly press conference.
Friday — Canada posts its August consumer price index. In the US, August leading indicators will be released along with the weekly Baker Hughes rig count.
*Note — all releases are listed in local time.