Euro Zone Unemployment Unchanged, US Markets Fall as Tensions in Ukraine Reach New Highs
August 29, 2014 7:32 am
Asian markets saw diverse results overnight, with the Nikkei closing down by 0.23% after disappointing macroeconomic figures but the Shanghai Composite closing up by almost 1%, boosted by aviation stocks. The Japanese Index declined after a serious of gloomy releases; a decline of 3% on a year-on-year basis was expected for Overall Household Spending, but in actuality the drop was almost double that figure, at -5.9%. Unemployment ticked up slightly, up at 3.8% in July from 3.7% in June, whilst Industrial Production grew by only 0.2% instead of the 1% expected. Meanwhile the Shanghai Composite rose on the back of aviation companies, with an announcement by Shanghai Securities News that defence sector reform initiatives are scheduled for release in October.
Over in Europe the DAX is currently trading higher, up by around 0.4% despite reports of the worst decline in retail sales since 2012, with July seeing a drop of 1.4% compared to June. Meanwhile the Euro zone unemployment rate saw no change from last month, sticking at 11.5%. Attention will be on the ECB with Mario Draghi having suggested at Jackson Hole that quantitative easing measures might be taken if the economic situation in the Euro zone worsens – the question now may be as follows; what will the ECB’s response be to news which shows that the economy isn’t worsening but isn’t showing signs of improvement either?
The US saw markets slip in Thursday’s session, as tensions in Eastern Europe reached new highs; it is becoming harder and harder for Russia to deny direct military involvement in Ukraine. The S&P was unable to hold on to close a second time above the 2k number – the index closed at 1996.74, with the Dow also down by 0.25% at 17,079.57. Later today the Chicago Purchasing Managers Index and the Reuters/Michigan Consumer Sentiment Index will release their numbers for August. Monday will see some markets closed in the US as the country celebrates the Labour Day Weekend.
Asian markets saw diverse results overnight, with the Nikkei closing down by 0.23% after disappointing macroeconomic figures but the Shanghai Composite closing up by almost 1%, boosted by aviation stocks. The Japanese Index declined after a serious of gloomy releases; a decline of 3% on a year-on-year basis was expected for Overall Household Spending, but in actuality the drop was almost double that figure, at -5.9%. Unemployment ticked up slightly, up at 3.8% in July from 3.7% in June, whilst Industrial Production grew by only 0.2% instead of the 1% expected.
Meanwhile the Shanghai Composite rose on the back of aviation companies, with an announcement by Shanghai Securities News that defence sector reform initiatives are scheduled for release in October.
Over in Europe the DAX is currently trading higher, up by around 0.4% despite reports of the worst decline in retail sales since 2012, with July seeing a drop of 1.4% compared to June. Meanwhile the Euro zone unemployment rate saw no change from last month, sticking at 11.5%. Attention will be on the ECB with Mario Draghi having suggested at Jackson Hole that quantitative easing measures might be taken if the economic situation in the Euro zone worsens – the question now may be as follows; what will the ECB’s response be to news which shows that the economy isn’t worsening but isn’t showing signs of improvement either?
The US saw markets slip in Thursday’s session, as tensions in Eastern Europe reached new highs; it is becoming harder and harder for Russia to deny direct military involvement in Ukraine. The S&P was unable to hold on to close a second time above the 2k number – the index closed at 1996.74, with the Dow also down by 0.25% at 17,079.57. Later today the Chicago Purchasing Managers Index and the Reuters/Michigan Consumer Sentiment Index will release their numbers for August. Monday will see some markets closed in the US as the country celebrates the Labour Day Weekend.
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