MARKET SUMMARY WEEK ENDING 4 SEPTEMBER 2015
8th September 2015
Europe Stocks Rebound From Weekly Drop as Glencore Leads Miners. The selloff that wiped out two days of European equity gains is showing signs of easing. The Stoxx Europe 600 Index advanced 1.1 percent to 356.83 at 8:09 a.m. in London. China's Foreign Exchange Reserves Fall in August on Yuan Support. China’s foreign- exchange reserves fell by a record last month as the central bank sold dollars to support the yuan after the biggest devaluation in two decades spurred bets on continued weakness.
Commodities in Review
Gold Holds Near Lowest in Two Weeks. Gold held near its lowest level in more than two weeks after the U.S. unemployment rate dropped to a seven-year low, adding to the case for the Federal Reserve to raise interest rates this month.
Copper Drops Most in 8 Weeks on German Factory Data: LME Preview. Copper fell the most in eight weeks on Friday after German factory orders declined more than expected in July, adding to concerns that a slowing global economy will dent metals demand.
U.S. Index Futures Climb as China Stock Gains Soothe Investors. U.S. index futures climbed after China’s central bank said the nation’s $5 trillion stock rout is close to ending, spurring a rally in Shanghai equities. E-mini futures on the Standard & Poor’s 500 Index due in September climbed 0.8 percent to 1,936.75 as of 12:37 p.m. in Hong Kong, while contracts on the Dow Jones Industrial Average gained 0.7 percent. The Shanghai Composite Index climbed 0.9 percent as trading resumed after a two-day holiday at the end of last week.
U.K. Stocks Fall to Extend Weekly Drop; BP Retreats with Miners. The FTSE 100 Index retreated along with global equities as investors cut exposure to riskier assets after U.S. payrolls data failed to add clarity on whether the Federal Reserve will raise interest rates. The FTSE 100 Index lost 2.4 percent to 6,042.92 at the close in London on Friday, taking its weekly drop to 3.3 percent. The broader FTSE All-Share Index fell 2.2 percent on Friday and Ireland’s ISEQ Index lost 0.9 percent.
Europe Stocks Rebound From Weekly Drop. The Stoxx Europe 600 Index advanced 0.8 percent to 356.01 at 9:27 a.m. in London. European stocks tumbled on Friday, deepening a weekly loss amid mixed U.S. jobs data as concern about the strength of the global economy and an impending Federal Reserve rate increase returned to centre stage. Data showing German industrial production increased in July added to investor optimism today.
Asian stocks fell, with the regional benchmark index heading for its lowest close since November 2012, after Chinese equities slumped as trading resumed on the mainland following a four-day weekend. The MSCI Asia Pacific Index dropped 0.5% to 124.16 as of 4:08p.m. in Hong Kong. The gauge slumped 4.8% last week, capping its seventh weekly decline, as a contraction in Chinese manufacturing reinforced investor concern about the world’s second-biggest economy.
Emerging Stocks Fall to Two-Week Low on Fed Outlook; Lira Slides. Emerging-market stocks fell toward a two- week low and currencies slid as investors weighed the timing of an increase in the near-zero U.S. interest rates that have buoyed demand for riskier assets. Malaysia’s ringgit slumped to a new 1998 low and Turkey’s lira weakened to a record. The MSCI Emerging Markets Index lost 1 percent to 780.50 at 9:05 a.m. in London. A gauge of 20 developing-nation currencies extended declines to a record low. Data on Friday showed U.S. unemployment fell to the lowest level since April 2008, even as non-farm payrolls numbers missed estimates. The odds of a Federal Reserve interest-rate increase at the Sept. 16-17 meeting held at 30 percent as of Friday.
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