The last day of the month and the quarter saw China finish strong with gains of 8.1% (no that is not a typo) for Shanghai, and 2.4% for Hong Kong. Unlike last week, however, this momentum has not carried into other world stock markets or commodities as focus has turned to mounting economic problems.
In Asia Pacific trading the Nikkei plunged 4.8% despite a softer Yen. In European trading, the CAC is down 1.7%, the FTSE has fallen 0.8% and the Dax is down 0.7%. US index futures are down 0.1%-0.3%.
Confession season started overnight, automaker Stellantis, parent of Chrysler, warned that second half sales are likely to be lower than expected across most regions, sending its ADRs down 13.4% in premarket trading. US auto sales are due tomorrow.
Meanwhile, many Americans are dealing with the tragic impact of Hurricane Helene which caused widespread damage across six states from Florida to Virginia with much of the worst of it in inland mountain areas. Adding to the turmoil, workers at US East Coast and Gulf Coast ports are expected to go on strike starting at midnight. On the political side, the US Vice Presidential candidates debate tomorrow evening.
It’s a big week for economic data as well. US Chicago PMI (street 46.2) is due at 9:45 am EDT. China Manufacturing PMI was not as feared (49.8 vs street 49.5). Manufacturing PMI reports for the rest of the world roll out overnight tonight and into tomorrow. US ADP payrolls are due on Wednesday followed by Service PMI reports on Thursday and US nonfarm payrolls on Friday.
In commodity action, Platinum, which is particularly sensitive to demand from automakers, is down 2.6%. US Crude Oil and Copper are both down 0.6%, suggesting that traders are more concerned at the moment about economic upheaval and the need for stimulus (weak demand) than the impact of stimulus itself. Cryptocurrencies are selling off today with Bitcoin down 3.1% and Ether down 1.4%, indicating that investors are dialling back risk exposure and taking profits. Gold is steady today trading near $2,665/oz,