Australia cuts key interest rate
The Reserve Bank of Australia cut its key Bank Rate by 0.25% to a new record low of 0.75%. The economy grew at its slowest pace in Q2 2019 for a decade.
Other market moving news roundup
- China celebrates 70 years of Communist rule with military parade.
- U.S. denies rumours of China investment restrictions as ‘fake’ news.
- South Korea’s exports drop for 10th month in a row.
- Japan’s manufacturers’ sentiment at 6-year low.
- Japan’s Manufacturing activity shrank at its fastest pace in seven months in September, according to PMI data released Tuesday.
- Japan raises national sales tax from 8% to 10% despite recession worries.
- Boris Johnson’s new Brexit plan comes under fire from some EU members.
- Hong Kong protesters continue to take to the streets on China’s National Day.
- UK manufacturing PMI rises to four month high of 48.3 in September. A reading below 50 indicates contraction. However, activity in manufacturing sector shrank in September – the fifth consecutive month of overall contraction.
- U.S. manufacturing PMI reading hits 10 year low.
- The average UK home is now valued at £215,352 according to data from Nationwide.
How are the latest news and events affecting markets?
As at 10:00 am BST
FTSE 100 under pressure since opening and down around 20 points at: 7403. This, despite better manufacturing data. A reading below 50 indicates contraction.
Dax up 10 points at: 12439 but also under pressure and falling from intraday high of: 12497
Dow futures up around 103 points at: 27030
China markets closed for national holiday.
Japan’s Nikkei closed up at: 21885 with futures pushing the index up further to around: 22030. This, despite reports of manufacturing activity shrinking and tax hike plan.
Main scheduled market news and events released today 1st October 2019
Germany – manufacturing PMI data due
UK – manufacturing PMI data due
EU – consumer price index & manufacturing PMI data due
U.S. – various Fed member speeches due today & manufacturing PMI data
Canada – GDP data due & manufacturing PMI data due
EU – ECB’s president Draghi speech due
Other market news
Like-for-like sales at Greggs rose by 7.4% for the three months to 28 September 2019.
Accountancy watchdog launches Thomas Cook audit probe.
According to Nationwide’s own mortgage data released Tuesday 1st October, the average home is now valued at £215,352 and that house price growth ‘almost ground to a halt’ in September 2019.
Shares in ScS, the sofa company have fell more than 7% Tuesday after taking a sales hit from hot weather and Brexit uncertainty.
Boris Johnson has reportedly said Tuesday 1st October that the ‘reality’ of Brexit is that there will need to be customs checks on the island of Ireland after the UK leaves the EU.
Dow drops on weak manufacturing PMI reading
U.S. – Dow opens up initially but quickly turns negative to give up around 100 point gain after weak manufacturing data is released. The lowest reading for some 10 years.
Will this data set pressure the Fed to reduce interest rates further?
Will the weaker than expected manufacturing data introduce recessionary fears again to the U.S. economy?
Dow: 26800 at 15:15 BST – Tuesday 1st October.
FTSE 100 closed down at: 7360
Dax closed down at: 12264
Apple reclaims $1 trillion market cap crown once again.
Dow closes down nearly 350 points after weak U.S. manufacturing data damages market sentiment.
Dow closed down at: 26573
S&P 500 closed down at: 2940
Nasdaq closed down at: 7908
End