Monday, 2 October 2017

Asian markets turn green; new data in focus

Posted by Valentine at 10:41 Labels:

Asia stock indexes were slightly higher on Monday, with market players focusing on new economic releases and as major markets will be closed for the most part of this week.

Earlier in the session, Japan presented its Tankan All Big Industry CAPEX index for the third quarter, which came in at a 7.7 percent growth rate, down from a forecasted 8.3 percent.

Also, the Tankan large manufacturers and non-manufacturers indexes were released, both outperforming expectations at 22 and 23 respectively.

Ahead in Europe, traders will turn to Markit’s manufacturing PMI indexes for September in Germany as of 07:55 GMT, the EU five minutes later and the United Kingdom at 08:30 GMT.

The Eurozone will also make available its unemployment rate for August at 09:00 GMT. Remarks from Peter Praet, Member of the Executive Board in the ECB, are due at 10:15 GMT.

Australia ASX +55.00 +0.96% 5,799.90 OPEN
Shanghai Comp +9.30 +0.28% 3,348.94 CLOSED
Hang Seng Index +132.70 +0.48% 27,554.30 CLOSED
Nikkei 225 +29.14 +0.14% 20,385.42 OPEN
TSEC 50 Index +76.34 +0.74% 10,460.28 OPEN

Chinese markets will be closed for the week. Germany will celebrate Unification Day on Tuesday. These factors could affect market volatility and activity levels.

The main focus this week will be at the release of employment data in the United States. Nonfarm payrolls, the unemployment rate and average hourly earnings are all due on Friday.

Last week, investors were cheered by a reassurance from Federal Reserve Chairwoman Janet Yellen that the US regulator is likely going to raise its short term interest rate once more in 2017.

According to Fed funds tracked by CME Group’s FedWatch tool, traders are currently pricing in a 81.7 percent probability of a 25 basis points rate hike by December.

Labor market conditions are carefully monitored by members of the Federal Open Market Committee to determine the future of monetary policy of the world’s first of economy.

Over the weekend, President Donald Trump said negotiating with Pyongyang was a waste of time and reinforced the idea that the US is ready to “do what has to be done” if tensions in the Korean peninsula persisted in the upcoming weeks.

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