Nikkei 225 stand out performer whilst FTSE 100 way behind Ingram commented on the outstanding performance by the Nikkei 225, with sales up 5% and earnings up a substantial 41%. Conversely, Ingram noted the respective poor performance of the FTSE 100, which experienced sales being down 21% and earnings down similar 19%. In the middle of the range, he continued by adding that the S&P 500, had sales contract by 5% and earnings contracting 2%. Meanwhile, he finished by expressing how Europe faced the top line contracting 8% while earnings remained flat.
Today, investors will follow the publication of the ADP report, which measures job creation in the private sector. Economists take advantage of the ADP report statements to improve their forecasts for the official employment report.
In the early hours of trading, mining and oil shares should negotiate under some selling pressure, resulting from strong reversal of the trend that was observed in the commodities market after the European close. In addition, investors will analyze the results that were published before the opening, but probably should have an impact strictly in the related stocks and should not influence the market as a whole.
Asian indexes closed higher, boosted by the good performance of the Shanghai Stock Exchange, which at 7:20 AM accumulated gains around 2%. Boosting the shares of this market was a report published by the state agency Shanghai Securities News that several investment funds have more than one million M. yuan (Chinese currency), about 150 000 M. €, to allocate the equity markets. While other Asian markets have closed up, the attitude of investors was characterized by some caution, justified by the publication of the US employment report.
U.S stock markets were sharply lower at close of trade on Thursday, owing to weak earnings reports from media companies, resulting in pulling the sector down to worst two-day loss since the financial crisis. The sell off was coupled by tension before the key job data to be released today, which could further indicate about the timing of the first Federal Reserve interest rate hike in almost a decade as Fed chair Janet Yellen indicated that “some” improvement in job market is needed to hike interest rates in U.S. Dow Jones Industrial Average slumped by 0.69% to 17,419.75; S&P 500 dropped by 0.78% to 2,083.56 and NASDAQ fell by 1.55% to 5,060.43. Technically, S&P 500 is trading in consolidation in the range of 2043.5 to 2131.5 since last six months. The break out on either side will guide the market’s direction.
Today’s session starts without relevant business news and with an economic agenda also quite meager. In this way, there can be expected more expressive movements by producers of raw materials, after being revealed economic indicators in China.
U.S stocks closed in red in last trading session. Dow Jones Industrial Average fell for seventh straight day on the back of solid employment data for July, raising prospects for interest rate hike in September. Plus, declining energy stocks continued playing major role in bringing the markets down, after crude futures slipped below $44 a barrel for the first time in nearly six months. Investors will be focusing on the speeches of Federal Reserve Governor Stanley Fischer and Atlanta Fed President Dennis Lockhart, to be scheduled today, to get clues about the health of the economy and the timing of Interest rate hike by Fed. Dow Jones Industrial Average fell by 0.27% to 17,373.38, S&P 500 composite plunged by 0.29% to 2,077.57 and NASDAQ dropped by 0.43% to 5,034.56
U.S stocks saw an impressive rally on Monday after billionaire investor Warren Buffett’s Investment Company Berkshire Hathaway Inc. struck an acquisition deal worth $37.2 billion with aerospace supplier Precision Castparts Corp. Following the proclamation, Precision Castparts stocks surged 19 percent. Dow Jones component Caterpillar Inc. led the index higher with the gain of more than 3%, while Boeing and Apple both escalated more than 2%. Dow Jones Industrial Average advanced 1.39% to 17,615.17 points, S&P 500 jumped by 1.28% to 2,104.18 and NASDAQ rallied by 1.16% to 5,101.80. While China devalued its currency to boost economic growth, Traders are looking forward to a series of economic data from China in the coming week, which includes reports on retail sales, fixed asset investment and industrial production, all to be released on Wednesday.
After the close of yesterday’s session, Google surprised the market by announcing that it will be replaced by a new parent company called “Alphabet”. The company explained in a statement that the universe of products and companies is already too big to exist under the name Google. The company chose to undertake a corporate reorganization with reflection in organizational structure. In the aftermarket, Google’s stock is up about 5%.
European stock markets were lower at close of trade on Tuesday, owing to the biggest devaluation of its currency by China in two decades. Plus, ZEW Institute’s German economic sentiment tumbled to lowest in 9 months in August. Looking at stock futures, European markets are expected to open broadly lower. The resistance level for DAX is at 11347.45 and its support level is at 11056.40. The resistance level for FTSE 100 is at 6710.45 and its support level is at 6520.98. Investors will focus on U.K’s important data which includes Average Earnings Index +Bonus (Jun), Claimant Count Change (Jul) and Unemployment Rate (Jun), due to release today. Besides this, EU’s Industrial Production (MoM) (Jun) and German 10-Year Bund Auction will also attract investors’ attention. However, most importantly, Investors will closely watch important data from world’s second largest economy China which includes reports on retail sales, fixed asset investment and industrial production, all to be released today before the opening of European markets. DAX and FTSE 100 slumped by 2.68% and 1.06% to 11,293.65 and 6,664.54 levels respectively.
European stock markets were broadly lower at close of trade on Wednesday, as the Asian sell off after Chinese devaluation sent the equities lower globally for a second straight day. Besides this, Chinese key data, including Industrial production and Fixed Asset Investment came weaker than anticipated. Markets were also panicky after Ukraine accused rebels for violating the ceasefire agreed between Kiev and Russia and executing the massive weaponry attack. However, taking cue from stock indices, stock markets are expected to open at a slightly positive note today. Euro zone is to release a batch of important data today which includes CPI and HICP index of its member countries. The resistance level for DAX is at 11293.65 and its support level is at 10676.78. The resistance level for FTSE 100 is at 6630.47 and its support level is at 6495.67. DAX and FTSE 100 plummeted by 3.27% and 1.40% to 10,924.61 and 6,571.19 levels respectively.
In the beginning of the session, European equities negotiated slightly higher, after the US stock market have reversed their downward trend and Asian stocks have also ended in positive range. The European markets consolidate after strong selling pressure after a devaluation of the Yuan of 1.90%. Today, the Chinese Central Bank have fixed a Yuan only marginally lower, thus giving a signal that wants a devaluation of its currency but in a thoughtful way. In business terms, Nestlé reported, relative to the 1st half, sales below expectations due to the collection of one of its products in India, while the second largest German utility company, RWE, also showed a lower semi-annual result than expected. Also German, ThyssenKrupp reported a significant increase in quarterly profit, aided by units of elevators and steel in Europe, beating analysts’ forecasts. On the other hand, the technological sector should capture the attention, after last night Cisco Systems have submitted their results, reporting a growth of 3.20% in net profit for the 4th quarter, while revenues increased 3.90%. In addition, the company expects an increase in their income between 2% and 4% and earnings per share between 0.55 USD and 0.57 USD. Cisco shares rose 3.87% in the aftermarket. Today’s publication of the minutes of the last meeting of the ECB should not raise great interest, since in this last event, July 16, there were no changes to the current monetary policy.
The Fed’s monetary policy is again the center of the debate on Wall Street after the economic data releases have suggested an increased strength of the economy, raising renewed expectations that the Fed start the interest rate hike cycle already in September.
U.S stock markets were down by more than 2% amid fears of global economic slowdown. This is despite the better than expected figures from Existing Home Sales report and Philadelphia Fed Manufacturing Index report. Fearful of slowdown in global economy, investors are expecting Fed to hold back interest rate hike till year end, resulting in boost in the prices of U.S sovereign bonds and sharp slump in equity markets. Dow Jones Industrial Average dropped by 2.06% to 16,990.69, S&P 500 composite fell by 2.11% to 2,035.73 and NASDAQ plunged by whopping 2.82% to 2,035.73 levels. Technically too, S&P 500 has breached its six months long major support of 2043.5 levels. This suggests that investors are washing their hands off risky investments avenues like equities and are seeking considerably safer haven Gold. U.S is to report its manufacturing PMI today. Looking at stock futures , U.S markets are expected to open at negative note today.
World markets are rebounding, unaffected by China which slumped more than 7% today as well. U.S stock markets are also expected to open broadly higher today, covering up losses from yesterday’s fall, as value investors will be jumping into the market. Plus, China has done the necessary interest rate cut today, the move the investors were expecting over the weekend. U.S stock markets also experienced the mayhem the other stock markets had dealt with, before the U.S stock markets opened in yesterday’s trading session. U.S stock indices saw the worst opening since 2008 financial crisis. Dow Jones plummeted more than 1000 points in early trade. U.S markets experienced wild fluctuations on black Monday as three indices started to rebound in the final hour of trade. U.S 30 fell by 3.58% to close at 5,898.87; S&P 500 plunged by 3.94% to 1,893.21 and NASDAQ dropped by 3.82% to 4,526.2 levels. Plus, FOMC member Lockhart didn’t give any indication as to what are the likely prospects of Fed of hiking interest rate this year. U.S is to release series of key data today, which includes, Markit Composite PMI, Services PMI, CB Consumer Confidence for the month of August and New Home Sales data for July.
Asian shares closed lower, with the Shanghai Stock Exchange accumulating losses of 2.50%, at 7:00 am. During the weekend, the Financial Times reported that the Chinese government would abandon its strategy to stabilize the stock market by buying shares held by state-owned financial institutions. The government in Beijing will focus its efforts on the punishment of persons and organizations that supposedly destabilized the Shanghai and Shenzhen exchanges. Initially, the Chinese authorities have tried to counter the sharp falls in stock markets, buying, through state funds, about 200,000 M.USD in two months. These interventions did not have had the desired success, displeasing international investors, as they are not familiarized the State to adopt such measures.
Asian shares closed with losses, which were quite pronounced in Tokyo. Dictating this trend were the economic data on China. In August, the PMI index on manufacturing activity, elaborated by the Chinese Government, fell from 50.0 to 49.7. This is the lowest level since August 2012, thus signaling that the Chinese industry is in a contraction phase. Caixin/Markit index, which also measures the manufacturing activity, fell in the same month from 47.8 to 47.3, the lowest since March 2009, confirming the contraction signs from the official PMI index. The difference between the two indexes lies in the PMI index that appeal to a larger sample and focus mainly on state enterprises and larger. The Caixin/Markit index is focused on a smaller sample, which consists mainly of small and medium-sized enterprises. In the past, investors associated negative data of the Chinese economy to possible monetary stimulus measures at this stage, investors fear that the Beijing government further devalue the yuan, which could induce other emerging countries to adopt a similar measure.
Despite the heavy losses suffered by Wall Street and the uncertainty in Asia, European markets are expected to remain resilient, at least at an early stage. In any case, investors are still nervous and sentiment is still particularly fragile. Developments in China in recent months raise a number of issues that shake the convictions that investors had before the summer. In addition, some investors are wondering if falling stock markets worldwide will not be a sign that the world economy will enter a slowdown phase. While these doubts are not dissipated, the market will continue to seek a balance, a process that usually translates into higher volatility.
Crash given away by the USD/JPY
Francis Hunt, The Market Sniper, joined Zak Mir on the Tip TV Finance show and discussed the current crash, zooming in on the FSTE 100, the S&P 500 and the USDJPY.
FTSE 100 almost stopped before big move down
Hunt highlighted the FTSE 100 crash retrospectively, noting how it continued to ease, before trying to hang on to a key level before slipping drastically.
S&P 500 had an underlying grind line before fall
Hunt outlined the tale of the S&P 500, which experienced marginally higher highs, with an underlying grind line which signals bulls exhausting themselves. He continued that it broke the low but failed to test the higher high, this was followed by the bulls’ final exhaust, which pointed to a major spill.
Almost impossible to see the red
Hunt commented that the 124/125 level on the USDJPY was the key warning to get out, and exaggerated the importance of looking across charts to identify moves due to enhanced integration in our global economy . He added that it entered a rally and looked for over performance, and Hunt outlined that was almost impossible to see the red.
See more at: Crash given away by the USD/JPY | TipTV.co.uk
In the pre-opening, European equities were trading higher, favored by the strong appreciation of Wall Street and the relative stability of the Asian session. It is not excluded that the standard of yesterday’s session to be repeated today. Yesterday, there has been a remarkable over-performance of the indices of Central Europe comparing to their Iberian counterparts. The reason for this trend is related to the fact that Central Europe’s economies have greater exposure to China than countries like Spain, Italy and even Portugal. Apart from exports, several German companies and other Central European countries have factories in China, which increases their dependence to this country. Today will take place the meeting of the ECB, which will have less interest than usual. The main point of interest will be the update of the economic projections. Since June’s projections, the situation in Greece became less unstable but the slowdown of the Chinese economy has become more evident. The ECB estimates that the GDP of the Eurozone grow 1.50% in 2015, 1.90% in 2016 and 2% in 2017. Some economists expect the ECB to revise downwards their projections for inflation (0.30% in 2015 and 1.50% in 2016 ). At the press conference, held at 13:30 it will be interesting to see if Mario Draghi will weave any comments on the impact of instability in China in the Eurozone economy.