Futures for US shares fell, and the Stoxx 600 fell 0.7%, edging lower for a sixth day. As cash trading resumed on Tuesday after a US holiday on Monday, the dollar climbed against its counterparts in the Group of 10, while Treasuries declined.
According to an industry study, China’s services sector experienced the slowest growth in August of this year, which adds to the evidence that the economic recovery is stalling and dims earlier optimism on government stimulus efforts. After falling more than 1%, Hong Kong shares led the falls as the MSCI Asia Pacific Index headed for its first decline in seven days. Yuan offshore fell in value.
According to Hebe Chen, an analyst at IG Markets Ltd. in Melbourne, “it’s the typical post-party reality check that’s cooling down China’s rally today, as the services PMI noticeably missed expectations, suggesting further economic downtrend ahead.”
Country Garden Holdings Co. also informed creditors that it paid coupons on two dollar bonds throughout their grace periods. Holders of the eight yuan bonds claim they were advised by corporate advisers about the proposal by the problematic developer who has come to represent China’s real estate problems.
Due to concerns about stagflation in the region, traders are now focusing on the euro area’s August PMI data due out on Tuesday. In a speech on Monday, President of the European Central Bank Christine Lagarde refrained from indicating whether policymakers will hike or keep interest rates the following week.
Goldman Sachs Group Inc. decreased their prediction of a US recession. “Continued positive inflation and labour market news has led us to cut our estimated 12-month US recession probability further to 15%, down 5pp from our prior estimate,” the company’s chief economist Jan Hatzius wrote in a note.
In other news, Brent crude fell for the first time in six days, falling 0.3% to $88.71 per barrel. Prices have nearly reached their highest point since November on to expectations of additional supply curbs from OPEC+. Gold dropped.
S&P Eurozone Tuesday’s global services PMI and PPI
Tuesday’s US industrial orders
At the ECB Legal Conference on Tuesday, panellists on central banks and international sanctions are presided over by ECB President Christine Lagarde.
GDP for Australia, Wednesday
Wednesday’s retail sales in Europe
Wednesday’s manufacturing orders from Germany
the Wednesday US trade
Wednesday’s rate decision for Canada
Andrew Bailey, the governor of the Bank of England, appears before the Treasury Select Committee of the UK parliament on Wednesday.
Wednesday sees the release of the Beige Book by the Federal Reserve.
Susan Collins, president of the Boston Federal Reserve, spoke on Wednesday at the New England Council.
China trading, Thursday’s forex reserves
Thursday’s Eurozone GDP
US initial claims for unemployment, Thursday
Tiff Macklem, Governor of the Bank of Canada, will discuss the Economic Progress Report on Thursday.
John Williams, president of the New York Fed, takes part in a debate that is moderated at the Bloomberg Market Forum on Thursday.
Raphael Bostic, president of the Atlanta Federal Reserve, will discuss the economy on Thursday at Broward College.
Friday’s GDP for Japan
France’s manufacturing output on Friday
Friday’s CPI for Germany
Several significant market changes include:
As of 8:20 a.m. London time, the Stoxx Europe 600 was down 0.7%.
S&P 500 futures declined by 0.3%.
Nasdaq 100 futures decreased by 0.2%.
The Dow Jones Industrial Average futures decreased by 0.3%.
MSCI Asia Pacific Index decreased by 0.7%.
MSCI Emerging Markets Index decreased by 0.8%.
Currencies
By 0.4%, the Bloomberg Dollar Spot Index increased.
To $1.0764, the euro decreased by 0.3%.
Japanese yen decreased by 0.3% to 146.90 per dollar.
Offshore yuan decreased by 0.3% to $7.2988 per dollar.
To $1.2591, the British pound dropped by 0.3%.