Germany’s July retail sales came in at +1.9% versus 0.0% m/m expected
US stocks finished lower on Wednesday to see the fourth straight losing session, ending the month on a downbeat note. All of the major averages finished the month down about 4%. On the data front, the US private-sector employment rose by just 132,000 in August, while annual pay rose 7.6%. The Dow Jones Industrial Average slid 0.9%, the S&P 500 lost 0.8%, and the Nasdaq fell about 0.6%.
Asian markets tracked Wall Street’s decline as investors braced for higher interest rates. The Nikkei 225 in Japan fell 1.53% even as a study on corporate financial statements for April-June showed a 17.6% improvement from the same period a year ago. Meanwhile, Japan chief Cabinet secretary said sudden FX fluctuations are not desirable. It is desirable for currency to move stably reflecting economic fundamentals, he added. The Shanghai Composite edged down 0.54%, Hong Kong’s Hang Seng lost 1.88% and Australia’s S&P/ASX 200 dropped 2.02%.
In Europe, stocks started September on a negative note, with the pan-European Stoxx 600 shedding 1% in early deals. In individual stocks, shares of mining and commodity trading giant Glencore fell more than 5% to lead the losses in the region. On the data front, Germany’s July retail sales came in at +1.9% versus 0.0% m/m expected while UK’s August Nationwide house prices arrived at +0.8% versus +0.1% m/m expected.
Meanwhile, the US dollar retains a bullish bias on Wednesday, oscillating around the 109.00 figure in early European trading. The USD index has settled just below twenty-year highs registered earlier in the week, refraining from any significant correction despite the overbought conditions as the risk-averse market helps the currency find demand. EURUSD finished higher for the third day in a row on Wednesday to come under some pressure today. The euro holds above parity but continues to look vulnerable at this stage.
