Moody’s French Recovery Warning, China Services PMI at 8 Year Low
August 5, 2014 8:48 am
After a shaky start to Monday’s session US indices rose yesterday afternoon, with the S&P500 and NASDAQ up 0.7% and the DOW up by nearly 0.5%. However, this rebound did not extend to the Asian session, with the Nikkei closing down by around 1%, the Hang Seng down 0.2% and the Shanghai Composite down by 0.15% after HSBC’s China Services PMI for July came in at 50, its lowest level since late 2005. The UK and Euro-zone also reported Services PMI figures this morning, with the UK’s up at 59.1 from last month’s 57.9 and the Euro-zone’s number down at 54.2 from 54.4. Sterling is currently up around 0.30% against the Euro, at €1.2602.
Moody’s has warned that France is being left behind countries like the UK when it comes to combating its deficit. The ratings agency has downgraded its French growth forecast – it’s now at 0.6% for 2014 and 1.3% in 2015, down from 1% and 1.5% respectively. The CAC was seemingly unaffected, however, trading up by around 0.6% while the FTSE is up by 0.43% and the DAX is up 0.64% after a series of strong earnings announcements. Credit Agricole shares rose after the French bank reported adjusted quarterly earnings of €1 billion. BMW reported a better-than-expected second quarter operating profit, helped by strong sales in China. Aggreko reported that first-half revenues grew 12% and Standard Life announced that first-half operating profit rose 12% to £339m as strong inflows into the insurer’s asset management business boosted fee income.
In oil markets, crude-oil futures held onto overnight gains on Tuesday—halting recent selling. On the NYMEX light, sweet crude futures for delivery in September traded at $98.52 a barrel, up 23 cents, while September Brent crude on London’s ICE Futures exchange rose $0.14 to $105.55 a barrel.
After a shaky start to Monday’s session US indices rose yesterday afternoon, with the S&P500 and NASDAQ up 0.7% and the DOW up by nearly 0.5%. However, this rebound did not extend to the Asian session, with the Nikkei closing down by around 1%, the Hang Seng down 0.2% and the Shanghai Composite down by 0.15% after HSBC’s China Services PMI for July came in at 50, its lowest level since late 2005. The UK and Euro-zone also reported Services PMI figures this morning, with the UK’s up at 59.1 from last month’s 57.9 and the Euro-zone’s number down at 54.2 from 54.4. Sterling is currently up around 0.30% against the Euro, at €1.2602.
Moody’s has warned that France is being left behind countries like the UK when it comes to combating its deficit. The ratings agency has downgraded its French growth forecast – it’s now at 0.6% for 2014 and 1.3% in 2015, down from 1% and 1.5% respectively. The CAC was seemingly unaffected, however, trading up by around 0.6% while the FTSE is up by 0.43% and the DAX is up 0.64% after a series of strong earnings announcements. Credit Agricole shares rose after the French bank reported adjusted quarterly earnings of €1 billion. BMW reported a better-than-expected second quarter operating profit, helped by strong sales in China. Aggreko reported that first-half revenues grew 12% and Standard Life announced that first-half operating profit rose 12% to £339m as strong inflows into the insurer’s asset management business boosted fee income.
In oil markets, crude-oil futures held onto overnight gains on Tuesday—halting recent selling. On the NYMEX light, sweet crude futures for delivery in September traded at $98.52 a barrel, up 23 cents, while September Brent crude on London’s ICE Futures exchange rose $0.14 to $105.55 a barrel.
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