MARKET SUMMARY WEEK ENDING 30 OCTOBER 2015
2nd November 2015
Euro-Area Manufacturing Picks Up as German Order Intake Improve. Manufacturing in the euro area unexpectedly accelerated in October as German companies fared better than initially reported, according to Markit Economics.
Carney to Spell Out BoE Rate Thinking With Forecasts. The Bank of England governor has been saying since July that the timing for the first interest-rate increase will become clearer at the turn of the year. This week is one of his last opportunities to guide investors, as he presents the central bank’s final economic projections for 2015 at the Inflation Report press conference in London.
Commodities in Review
Fed-Rate Outlook Damps Commodities. The Fed dropped a reference to global risks and referred to its “next meeting” on Dec. 15-16 as it discussed liftoff timing in a statement released Wednesday. The Bloomberg Commodity Index fell 1 percent.
Oil Speculators Boosting Bearish Bets Miss Best Rally in 8 Weeks. Hedge funds betting oil would sink toward $40 a barrel missed the biggest rally in eight weeks. Oil surged after a government report on Oct. 28 showed that U.S. refiners came back from seasonal maintenance faster than expected, boosting crude demand.
U.S. Index Futures Erase Decline After Europe Data Offsets China. U.S. stock-index futures were little changed, erasing an earlier drop, after improving factory data from Europe countered a decline in Chinese manufacturing. Standard & Poor’s 500 Index E-mini contracts expiring in December added less than 0.1% to 2,074.75 at 9:53 a.m. in London. Dow Jones Industrial Average futures gained 0.1% to 17,614. U.S. stocks posted their biggest monthly advance since 2011 in October amid a rebound in raw materials and energy shares. The advance pushed the S&P 500 to its highest level since August Oct. 28 , before declining on the final day of the month.
U.K. October Manufacturing Grows at Fastest Pace in More Than a Year. In a monthly report published in London, Markit Economics said factories bucked this year’s downward trend and started the fourth quarter on a stronger footing. The manufacturing index rose to 55.5 from a revised 51.8 in September, beating economists’ forecast for a reading of 51.3. The BOE’s nine-member committee will announce its next interest-rate decision and publish new forecasts on Thursday. It said last month that external factors weren’t having a material impact on the U.K., a view reinforced by the Markit survey.
European Stocks Climb as Euro-Area Manufacturing Beats Estimate. European stocks advanced as a better- than-expected euro-area manufacturing report outweighed disappointing Chinese output data. The Stoxx Europe 600 Index climbed 0.5% to 377.17 at 9:51 a.m. in London, after posting its best monthly rally in six years in October. The Stoxx 600 gained 8 percent in October after President Mario Draghi said the European Central Bank will consider additional easing in December, and China increased stimulus measures.
Asia Stocks Fall on China Factory Data as Industrial Shares Drop. Asian stocks dropped, after their best month since May 2009, as industrial companies declined following data signalling a contraction in Chinese manufacturing. The MSCI Asia Pacific Index fell 1.1% to 132.95 as of 4:16 p.m. in Hong Kong. The measure rallied 8.6% in October as China cut interest rates and the European Central Bank hinted at potential extra stimulus, while U.S. and Japanese policy makers kept their monetary policies accommodative.
Emerging-Market Stocks Erase Gains on China Shares; Lira Jumps. Emerging-market stocks erased gains, with Chinese shares retreating after manufacturing contracted. The MSCI Emerging Markets Index was little changed at 847.81 at 8:30 a.m. in London, with nearly seven shares falling for every six that rose. The Shanghai Composite Index fell 1.7% a second day of declines that pared its rebound to 14% from this year’s low on Aug. 26, as the government took steps to stabilize the stock market and policy makers introduced more measures to boost growth. The Hang Seng China Enterprises Index slid 1.5 percent, capping a fifth day of declines, its longest streak since Sept. 7.
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