Daily Digest: Monday 30th September
Europe
European equities experienced a slowdown in momentum as traders face a week of Eurozone inflation data prints, bucking last week’s positive trends. The UK’s FTSE 100 (FTSE) fell 83.81 points (1.01%) to 8,236.95, with sentiment mirrored across Central Europe as the STOXX 600 (STOXX) fell 5.19 points (0.98%) to 522.89.
Rest of the World
Following a weekend of scrutiny over stimulus measures, traders in China returned to their desks as an equity rally resumed, driven by economist roadmaps of last week’s economic support packages. The Shanghai Composite index (¥SSE) recorded its largest single session move of the month, rising 248.97 points (8.06%) to 3,336.50, extending the indexes five session gains above 20%. The move comes despite growing concern amongst western economists, as questions remain over the true depth and potential effectiveness of last week’s rescue packages. A proverbial ‘plaster on an open wound’ debate has been sparked, which, if proven could deepen China’s economic troubles. While some scepticism may be justified, the true effectiveness of stimulus measures can only be realised once government intervention begins.
Political uncertainty seems to have disconnected Japanese equities from wider market direction, as the Nikkei 225 (¥N225) fell 1,910.01 points (4.8%) to 37,919.55, erasing the majority of last week’s gains. The ruling Japanese Liberal Democrat party has elected a new leader in Shigeru Ishiba, who is expected to take up the position of PM on Tuesday, following the resignation of former PM and party leader.
What to Watch Tomorrow
Eurozone Flash Core CPI
Eurozone Flash CPI
UK Final Manufacturing PMI
Eurozone Final Manufacturing PMI
US ISM Manufacturing PMI
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