China’s Caixin/Markit manufacturing PMI fell to 49.2 last month, from 50.3 in July
Wall Street stocks finished slightly lower overnight, as investors started to shift focus to U.S. jobs data for August due on Friday. The release will give investors a chance to estimate when and how the Federal Reserve will begin tapering its bond purchases. As such, the S&P 500 lost 0.13%, the Dow Jones Industrial Average fell 0.11% and the Nasdaq slipped less than 0.1%. Later today, the ADP report and ISM manufacturing will come into market focus.
Today in Asia, equities were mostly higher despite losses seen in the US. China’s Caixin/Markit manufacturing PMI fell to 49.2 last month, from 50.3 in July, versus 50.2 expected. Furthermore, a sub-index for production fell to 47.7, the slowest pace of expansion since February last year. Still, the Shanghai Composite index gained 0.65%. The Kospi in Seoul added 0.24% while Sydney’s S&P/ASX 200 shed 0.1%.
European stocks edged higher on Wednesday despite fresh signs of weakness in Asian economies. The pan-European STOXX 600 started September with a 0.9% rise. Fresh data out of the Eurozone showed that IHS Markit’s final manufacturing PMI fell to 61.4 in August from July’s 62.8, below an initial 61.5 flash estimate. As a reminder, Eurozone inflation surged to a 10-year high last month.
In currencies, the USD index reversed yesterday’s pullback to 92.40 and advanced to the 92.80 area on Wednesday, re-shifts its attention to the key level at 93.00. EURUSD is holding marginally above the 1.1800 figure but still lacks upside momentum to see more sustained gains. The immediate upside barrier now arrives around 1.1850, followed by the 1.1900 figure. On the downside, the nearest support is expected at 1.1780, followed by the 20-DMA which lies in the 1.1755 area.