Markets lower on Chinese data, oil decline... Japanese PM puts a hold on sales tax...
Markets lower on Chinese data, oil decline
Equity markets are weak so far Wednesday as data and oil add to concern ahead of upcoming meetings of OPEC, the ECB and the Fed.
Chinese PMI data showed better-than-expected growth for large companies but the figures for services were weaker; services now make up more than half of China’s GDP.
Oil prices are also lower ahead of the OPEC meeting Thursday, which is not expected to result in an output cap and concern over new growth in the supply glut was exacerbated by the Chinese data.
Even surprisingly good GDP growth for Australia was not enough to boost Asian indexes; Sydney was down 1 per cent as the 3.1 per cent GDP rise failed to offset losses. The other major Asian indexes also closed lower.
European markets are also weak with oil in focus along with the region’s banking sector. A meeting of the European Central Bank Thursday will be eyed for inflation data in particular.
Wall Street and Toronto are expected to open lower.
Japanese PM puts a hold on sales tax
Japan’s proposed increased sales tax is on hold. Prime Minister Shinzo Abe announced Wednesday that the plan to hike the sales tax from 8 per cent to 10 per cent this year will not go ahead.
The Prime Minister had been urged by economists to postpone the plan as the so called ‘Abenomics’ has failed to produce the expected results. The rise in the tax has been pushed back to October 2019.
Equity markets are weak so far Wednesday as data and oil add to concern ahead of upcoming meetings of OPEC, the ECB and the Fed.
Chinese PMI data showed better-than-expected growth for large companies but the figures for services were weaker; services now make up more than half of China’s GDP.
Oil prices are also lower ahead of the OPEC meeting Thursday, which is not expected to result in an output cap and concern over new growth in the supply glut was exacerbated by the Chinese data.
Even surprisingly good GDP growth for Australia was not enough to boost Asian indexes; Sydney was down 1 per cent as the 3.1 per cent GDP rise failed to offset losses. The other major Asian indexes also closed lower.
European markets are also weak with oil in focus along with the region’s banking sector. A meeting of the European Central Bank Thursday will be eyed for inflation data in particular.
Wall Street and Toronto are expected to open lower.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 17,787.20 (-0.48 per cent) | +0.08 per cent | -1.40 per cent |
| TSX Composite | 14,065.78 (-0.15 per cent) | +0.82 per cent | -6.69 per cent |
| Europe (at 5.30am ET) |
|||
| UK FTSE (previous) | 6,191.36 (-0.63 per cent) | -0.81 per cent | -10.96 per cent |
| German DAX | 10,192.62 (-0.68 per cent) | +1.53 per cent | -10.87 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,160.55 (-0.28 per cent) | +0.12 per cent | -37.74 per cent |
| Japan Nikkei | 16,955.73 (-1.62 per cent) | +1.74 per cent | -17.57 per cent |
| Other Data (at 5.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 49.02 (-1.74 per cent) |
48.30 (-1.63 per cent) |
1218.20 (-0.06 per cent) |
U$0.7643 |
| Aus. Dollar |
|||
| U$0.7259 | |||
Japanese PM puts a hold on sales tax
Japan’s proposed increased sales tax is on hold. Prime Minister Shinzo Abe announced Wednesday that the plan to hike the sales tax from 8 per cent to 10 per cent this year will not go ahead.
The Prime Minister had been urged by economists to postpone the plan as the so called ‘Abenomics’ has failed to produce the expected results. The rise in the tax has been pushed back to October 2019.
