On 14 September, 2015 – Most global markets declined on disappointing data from China

Most stock indices declined Monday as investors waited for the Federal Reserve announcement Thursday.
United States
Stocks declined as many investors sat on the sidelines ahead of the Federal Reserve’s policy meeting this week while others worried about weak data from China. The Dow Jones industrials and S&P were down 0.4% while the Nasdaq lost 0.3%. Trading was thin.
Investors remain confident the Fed will raise borrowing costs this year, even as most bet the FOMC will not increase rates Thursday. Traders are pricing in a 26% chance of action on Thursday, down from 48% before China’s currency devaluation last month. Odds of a move at the December meeting are about 59%.
Words from Fed Vice Chairman Stanley Fischer in 2014 offer some support for those expecting a move on rates this week. Just months before taking over as the Fed’s No.2 official last year, he said that delaying increases carried its own difficulties and the situation is always unclear and monetary policy takes time to affect the economy. “Don’t overestimate the benefits of waiting for the situation to clarify,” he said.
Apple advanced after it said iPhone pre-orders were on track to beat last year’s first-weekend record. Solera Holdings jumped after it agreed to be acquired by an affiliate of private equity firm Vista Equity Partners for US$3.74 billion. Raptor Pharmaceuticals dropped after the drug developer said it may scrap development of a liver disease treatment because it failed to pass a key test.
Gold at the afternoon London fixing dropped US$21.75 to US$1,400.50. Copper futures were down 1.75% to US$2.41. WTI spot crude was down 53 US cents to US$44.10. Dated Brent spot crude was up US$1.64 to US$46.50. The US dollar was up against the euro. It was virtually unchanged against the pound and Canadian dollar. However, it declined against the yen, Swiss franc and Australian dollar. The Dollar Index was up 0.2%. The yield on US Treasury 30 year bond unchanged was at 2.95% while the yield on the 10 year note slipped 1 basis point to 2.18%.
Europe
Most stock indices were down Monday thanks to disappointing Chinese economic data over the weekend. Investors were also hesitant to take positions ahead of the Federal Reserve announcement on Thursday. The FTSE was down 0.5%, the CAC retreated 0.7% and the SMI dropped 1.0%. However, the DAX managed to edge up 0.1%.
RWE was down but E.ON rose. Both Deutsche Bank and Commerzbank advanced. In Paris, Alcatel Lucent was up. Finland-based Nokia has obtained clearance from the Committee on Foreign Investment in the United States for its proposed acquisition of Alcatel-Lucent. Nokia climbed in Helsinki. Airbus declined after the company formally inaugurated its new Mobile, Alabama-based US manufacturing facility today. Société Television Francaise surged after the French government decided against allowing evening advertising on state-owned television. ARM Holdings gained on the news that its customer, Apple, announced that preorders for its new iPhones are on pace to exceed last year’s first weekend record of 10 million units. BHP Billiton gained on a broker upgrade but Antofagasta dropped on a downgrade.
Eurozone industrial production was up for the first time in three months, exceeding expectations and suggesting that a positive contribution to growth is likely in the third quarter. Industrial production rose 0.6% on the month following a decline of 0.3% in June.
Asia Pacific
Asian stocks were mixed as weak Chinese data and anxiety ahead of this week’s FOMC meeting kept investors on edge. Investors took disappointing Chinese industrial output and fixed-asset investment data in their stride. However the Shanghai Composite tumbled 2.7% on doubts about Beijing’s ability to achieve its growth target of about 7% for 2015. The Hang Seng added 0.3%.
The Nikkei dropped 1.6% with concerns about China and a firmer yen weighing on investors prior to the conclusion of the Bank of Japan’s two-day policy meeting on Tuesday. Softbank, NTT DoCoMo and KDDI sank after Prime Minister Abe called for lower phone rates. Also down were Fast Retailing, Mitsubishi UFJ Financial and Mazda Motor. Energy explorer Inpex was down as was JX Holdings after crude oil futures fell sharply Friday. However, Chubu Electric Power, Kansai Electric Power, Kawasaki Kisen Kaisha, NTT Data and Nippon Electric Glass advanced.
Initially, Australian shares erased early gains as a result of the losses on the Shanghai Composite and Nikkei. However, as the trading day drew to a close, news emerged that Malcolm Turnbull resigned from his position as communications minister and would challenge Prime Minister Tony Abbott for leadership of the Liberal Party. After markets here closed, Turnbull did defeat Abbott for the party leadership and will now be prime minister. Both the S&P/ASX and All Ordinaries were up 0.5%.
The Kospi retreated 0.5% as investors grew increasingly anxious about whether the Fed will start tightening its monetary policy. However, the Sensex rallied 1.0%. A trio of positive economic reports spurred optimism about domestic growth and paved the way for another interest rate cut as early as September 29 when the Reserve Bank of India (RBI) is scheduled to announce its policy decision.
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*
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.
*Note — all releases are listed in local time.