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Home / Business / Global equities drop to a low for the month following the shock of US manufacturing

Global equities drop to a low for the month following the shock of US manufacturing



By Hideyuki Sano

TOKYO (Reuters) – Global stocks fell to a low for the month on Wednesday after US manufacturing activity plummeted to more than a decade ago for the US economy.

A slowdown in US economic growth would eliminate one of the few remaining bright spots in the global economy, and would occur if and when Europe is seen as close to recession.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "MSCIs worldwide stock measurement <.MIWD00000PUS> the 49 markets, has fallen 0.06% to a low last seen in early September after losing 0.83% in the previous session. "Data-reactid =" 25 "> The MSCI Stock Index <.MIWD00000PUS> covering 49 markets fell 0.06% to a lows last seen in early September after losing 0.83% in the previous session.

European equities are expected to fall, with European stock futures falling by 0.2% to 0.4%.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "In Asia, the MSCI stock index fell (excluding Japan) for the Asia-Pacific <.MIAPJ0000PUS> by 0.6%, with Australian equities <.AXJO> declining 1.3% and South Korean equities declining 1.5% Japanese Nikkei <.N225> The Chinese markets are closed for a one-week holiday. "data-reactid =" 27 "> In Asia, the Asia-Pacific MSCI stock index excluding Japan for the Asia-Pacific <.MIAPJ0000PUS> fell 0.6%, with Australian equities <.AXJO> fell 1.3% and South Korean equities fell 1.5%. Japan's Nikkei <.N225> fell 0.4%. China's markets are closed for week-long holidays.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Hong Kong's Hang Seng Index <.HSI> fell 0.3% on the previous day's trading day, and the index fell 1.2% in early trading on Tuesday, when Hong Kong police shot dead a youthful demonstrator who was the first to leave the index in nearly four months of turmoil hit by live ammunition in the city governed by China. "data-reactid =" 28 "> Hong Kong's Hang Seng Index <.HSI> fell 0.3% after a March day foliage the day before. The index even fell 1.2% in early trading. On Tuesday, Hong Kong police shot and killed a teenage demonstrator, who was struck by live ammunition for the first time in nearly four months of unrest in China-ruled city.

Data on retail sales in Hong Kong in September are expected later on Wednesday.

] "There is nothing but a dreadful number imaginable here," said Rob Carnell, ING's chief economist in the Asia-Pacific region, adding that he is following events in Hong Kong "with a growing sense of despair."

Asia, North Korea carried out at least one more projectile launch on Wednesday, the day after it was announced that talks will be held on a working level with the United States over the weekend.

<p class = "canvas-atom canvas-text Mb (1.0) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "On Wall Street, the S & P lost 500 <.SPX> 1.23%, reaching a four-week low. "Data-reactid =" 32 "> On Wall Street, the S & P 500 [1239019] lost 1.23% to hit a four-week low.

The sale was triggered after the Institute for Supply Management's (ISM) factory activity index reached a lows The most closely watched US manufacturing data dropped by 1.3 points to 47.8 points the lowest level since June 2009.

A value below 50 indicates a decline in the manufacturing sector. The markets had expected that the index would rise above 50 again.

(Graphic: US Manufacturing – https://fingfx.thomsonreuters.com/gfx/mkt/12/6830/6761/191002i.png)[19659012<ThedatakamontheproductiondataofEurozoneshowedthestrongestfallbackfastscentenary

"In terms of production prospects, those are for next Weekly scheduled trade talks between the US and China all in. If that works well, we might well have a V "Hirokazu Kabeya, chief strategist at Daiwa Securities, has shaped the recovery of ISM data over the coming months.

"That means we can not just bet on a further downturn in the US economy right now, and I do not think we need to change our view that the US economy remains relatively solid," he added.

<p class = "Canvas Atomic Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em)) – sm" type = "text" content = "The bad data has the Fed Funds Rate Futures Price Raised Drastically, With the November Contract Now Pricing a Chance of About 80% Erve will cut interest rates on October 30, compared to just over 50% ahead of the data. " reactid = "41"> The bad data has raised the futures price for Fed interest rates sharply, and the November contract has now been set. With a probability of about 80%, the US Federal Reserve will raise interest rates on the 30th. October, compared with just over 50% before the data.

US President Donald Trump once again fought the Federal Reserve on Tuesday, saying the central bank had kept interest rates "too high" and a strong dollar was hurting the US factories.

However, it's another question as to whether the Fed will do so. Lower rates as hastily as Trump and the financial markets want it.

"We do not think the Fed will cut interest rates this month, the Fed is likely to cut interest rates in December, considering the strength of the economy, at which time new tariffs will be introduced for China," Toshifumi said Umezawa, strategist at Pictet Asset Management.

"Given the disagreements between Fed policy makers, it will be difficult to reach a conclusion by next month," he added.

It was not until Tuesday when Charles Fed, president of the US Federal Reserve Bank in Chicago, said that the US Federal Reserve could maintain key interest rates for the time being and that there is scope to raise policy rates slightly over the next few years as the economy continues to grow.

The US dollar slid against a basket of currencies from Tuesday's biennium when the ISM survey shook the notion that the US economy will withstand the trade war.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – -sm Mt (0.8em) – sm" type = "text" content = "The yen rose from Tuesday's low of 108.47 to 107.85 yen per dollar . "data-reactid =" 48 "> The yen rose from the Tuesday low of 108.47 to 107.85 yen per dollar .

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – -sm Mt (0.8em) – sm" type = "text" content = "The Euro was trading at 1.0933 USD after it hit an almost 2 1/2-year low of $ 1.0879 on Tuesday. "Data-reactid =" 49 "> The Euro was trading at $ 1.0933 after hitting almost 2 on Tuesday 1/2 year low of $ 1.0879.

<p class = "canvas atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The Australian Dollar hit $ 0.6713 after plunging a 10 1/2-year low of $ 0.6672 the day before, after the Reserve Bank of Australia lowered interest rates and raised concerns about employment growth. "Data-reactid =" 54 "> The Australian dollar hit $ 0.6713 after reaching a 10 1/2-year low of $ 0.6672 the day before, after the Reserve Bank of Australia cut interest rates and raised concerns about employment growth

< p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Gold rose to 1.479,80 USD per ounce from a two-month low of $ 1,459.50 on Tuesday due to a robust US dollar. "data-reactid =" 55 "> Gold rose to $ 1,479.80 an ounce (194590 40), after falling to a two-month low of $ 1,459.50 on Tuesday on a robust US dollar.

Weak US data pushed oil prices close to one-month low, even though a surprise decline in US crude oil inventories helped them fall back in Asia.

<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) –sm" type = "text" content = "Brent Crude Crude oil futures rose 0.9% to $ 59.42 per barrel, after reaching a four-week low of $ 58.41 on Tuesday, up 1 from a low for the month of $ 53.05 , 4% to $ 54.36 a barrel. "Data-reactid =" 57 "> Brent Crude Futures rose 0.9% to $ 59.42 a barrel, having hit a four on Tuesday Weekly low of 58.41 USD had reached 54.36 USD per barrel after reaching a monthly low of 53.05 USD.

(coverage by Hideyuki Sano, additional coverage by Noah Sin in Hong Kong, edited by Richard Borsuk and Richard Pullin)


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