Asian markets are down today after Chinese manufacturing contracted for a fourth month – reviving worries of a slowdown in the Chinese economy. Many analysts are noting that the problems facing China are structural, and that the “deceleration” could continue. Though data from the US has been bullish recently, the prospect of increased demand for Asian goods has not dented investor pessimism. Markets in Japan and Korea are closed for a holiday. The Hang Seng closed down 1.28%, and the ASX 200 closed up 0.08%.
European markets are also facing bearish sentiment. Bad Chinese data has also played a role in the decline currently facing continental equities. However, tension is flaring up again in the Ukraine as government forces engage pro-Russian rebels. Due to both political and economic factors, it seems European indices may continue their slide – at least until US ISM non-manufacturing data comes out. Please not that UK markets are closed for a bank holiday. The Stoxx 50 is down 1.29%, the DAX is down 1.33%, and the CAC is down 1.05%
Last Friday, better than expected Nonfarm Payrolls data gave US indices a boost initially. However, tension in the Ukraine scared investors into safe haven assets. Today, US markets have not opened yet, but indices futures have declined due to worse than expected data from China. Due to the importance of China as a trading partner, investors often worry about US markets should activity in China start to slowdown. In addition, tension from the Ukraine is still threatening market performance. Should ISM non-manufacturing data come out better than expected, we may see this movement reverse. Otherwise, markets are looking very bearish.
May 5, 2014 – Indices News
Asian markets are down today after Chinese manufacturing contracted for a fourth month – reviving worries of a slowdown in the Chinese economy. Many analysts are noting that the problems facing China are structural, and that the “deceleration” could continue. Though data from the US has been bullish recently, the prospect of increased demand for Asian goods has not dented investor pessimism. Markets in Japan and Korea are closed for a holiday. The Hang Seng closed down 1.28%, and the ASX 200 closed up 0.08%.
European markets are also facing bearish sentiment. Bad Chinese data has also played a role in the decline currently facing continental equities. However, tension is flaring up again in the Ukraine as government forces engage pro-Russian rebels. Due to both political and economic factors, it seems European indices may continue their slide – at least until US ISM non-manufacturing data comes out. Please not that UK markets are closed for a bank holiday. The Stoxx 50 is down 1.29%, the DAX is down 1.33%, and the CAC is down 1.05%
Last Friday, better than expected Nonfarm Payrolls data gave US indices a boost initially. However, tension in the Ukraine scared investors into safe haven assets. Today, US markets have not opened yet, but indices futures have declined due to worse than expected data from China. Due to the importance of China as a trading partner, investors often worry about US markets should activity in China start to slowdown. In addition, tension from the Ukraine is still threatening market performance. Should ISM non-manufacturing data come out better than expected, we may see this movement reverse. Otherwise, markets are looking very bearish.
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