Daily Digest: Tuesday 24th September
USA
As was the case with European equities, US equity performances were buoyed by the announcement of a new set of stimulus packages for the Chinese economy. The S&P 500 ($SPX) rose 14.46 points (0.25%) to 5,732.93, testing new all-time highs before sliding lower into the close. Similarly, the Dow ($INDU) tested new all-time highs at its intraday peak before closing 83.57 points (0.20%) higher at 42,208.22. Despite not testing new highs, the Nasdaq 100 ($NDX) experienced slightly higher individual gains rising 92.65 points (0.47%) to 19,944.84.
Europe
The positive spillover from this morning’s Chinese economic stimulus talks extended beyond Asian markets, reinforcing investor sentiment globally. London listed equities headed higher as the FTSE 100 (FTSE) extended gains, rising 23.05 points (0.28%) to 8,282.76.
Rest of the World
Tuesday marked the start of a new week for Japanese traders as the nations Equinox day celebrations came to a close. The prevailing macro data print on Tuesday were August’s flash manufacturing PMI figures, data came in at 49.6 falling 0.3 points short of market expectations. As noted in yesterday’s post, a PMI under 50 implies a contraction in sector output. Therefore, 49.6 implies that Japanese manufacturing activity is declining, at a rate marginally faster than analyst predictions. Flash data for August provisionally extends a downtrend in output to three months. On a wider, macroeconomic level, industrial output contributes to around a quarter of Japanese GDP, therefore if sustained declines continue, there may be an observable negative impact on GDP if services output growth fails to cover the shortfall. Equity traders seemed relatively unfazed by the print as the Nikkei 225 (¥N225) headed 216.68 (0.57%) higher to 37,940.59 as traders continue to test resistance between 38,000 and 38,500.
In China, the Shanghai Composite Index (¥SSE) extended this week’s gains, rising a further 114.21 points (4.15%) to 2,863.13. This moves comes as the Chinese government and central bank ramp up their efforts to support an ailing economy. Reports suggest that officials are attempting to support and extend credit use, ease borrowing conditions, whilst also deploying sector-specific measure aiming to support areas such as commercial and residential real estate.
What to Watch Tomorrow
Japanese core CPI (YoY)
US Crude Oil Inventories
Sources:
https://uk.finance.yahoo.com/world-indices/
https://uk.finance.yahoo.com/commodities
https://www.londonstockexchange.com/indices/ftse-100
https://www.binance.com/en-GB/price/bitcoin
https://www.binance.com/en-GB/price/ethereum
https://qontigo.com/index/sxxp/
Stock Market Activity Today & Latest Stock Market Trends | Nasdaq
https://coinmarketcap.com/charts/#market-cap
https://www.forexfactory.com
Definitions:
YoY - Year on Year, or, Year over Year
MoM - Month on Month, or, Month over Month
QoQ - Quarter on Quarter, or, Quarter over Quarter
ECB - European Central Bank
BOJ - Bank of Japan
Fed - Federal Reserve
BOE - Bank of England
SNB - Swiss National Bank
DOJ - Department of Justice