Asia
As at the start of last week, global investors have been forced to react to North Korea’s latest military hostility. The country’s testing of a nuclear missile – and the US’s threat of a “massive military response” – has sent markets lower on Monday, particularly in Japan, Hong Kong and South Korea. Japan’s Nikkei and Topix indices were off nearly 1%, while South Korea’s Kospi was more than 1% lower at the close.
Stock markets in China shrugged off the weekend’s drama, with the main indices ending the day marginally higher than on Friday. Australia’s All Ordinaries index was also a touch lower ahead of Tuesday’s interest rate decision, where the central bank is expected to maintain the base rate at 1.5%.
Europe
Markets in Europe took their cue from the drop in Asian equities. In the UK, the manufacturing PMI for August came in lower than expected – the index came in at 51.1, the lowest in a year, and just above the line that divides expansion from contraction. The FTSE 100 was off around 8 points at 7430 in midmorning trading.
Precious metal miners were in the ascendancy, as they were when North Korea launched a missile over Japan last week. Gold miner Randgold Resources (RRS), was up nearly 2% at £80.55, having started the year around £64 a share, boosted by gains in physical gold prices. Silver miner Fresnillo (FRES) was the second biggest rise in the FTSE 100 on Monday morning. FTSE All Share stock Lonmin (LMI) was nearly 4% higher on Friday’s close at 87p. Germany’s Dax also followed the weaker trend in global markets, and was off nearly 0.5% approaching midday CET.
In the eurozone, the Sentix Investor Confidence survey was slightly better than forecast, while producer prices for July – and an indicator of inflation expectations – was below forecasts.
North America
US and Canadian stock markets are closed for Labor Day and there are no corporate or economic announcements. Looking ahead the shortened working week, US durable goods orders and US factory orders are due on Tuesday for July, while weekly jobless claims to September 2 are due on Thursday.
In Canada, Wednesday sees the Canadian central bank decide on interest rates – the forecast is for no change at 0.75% - and Friday sees the August unemployment numbers and rate for the country. The earnings calendar is relatively light for the remainder of the working week, although Hewlett Packard’s Enterprise arm (HPE) is due to report on Tuesday, and Dell (DVMT) will report earnings on Thursday.
