June 23, 2024

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European Shares To Open Lower On Weak China Data

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European stocks may open flat to slightly lower on Tuesday after Israeli Prime Minister Benjamin Netanyahu rejected calls for a ceasefire in Israel’s war against Hamas and vowed the country would “fight until this battle is won.”

Growth worries also returned to the fore after an official survey showed Chinese manufacturing activity unexpectedly returned to contraction in October – suggesting more policy support may be needed to ensure the economy reaches Beijing’s annual 5 percent growth target.

The official purchasing managers’ index (PMI) fell to 49.5 from 50.2 in September while non-manufacturing activity grew at a slower pace with the corresponding PMI dropping to 50.6 from 51.7.

Asian stocks traded mixed, with benchmark indexes in South Korea and Hong Kong leading losses as investors looked ahead to the Fed and BOE meetings this week.

Both the Fed and Bank of England aren’t expected to make any rate adjustments.

Earlier today, the Bank of Japan allowed more flexibility in its yield-curve control policy – allowing 10-year Japanese government bond yields to increase above 1 percent in response to inflation pressures and volatility concerns.

The dollar index was slightly higher while gold traded flat after slipping below the $2,000/ounce level in the previous session.

Oil prices rose after falling nearly 3 percent in the previous session on demand concerns and amid signs that the Israel-Hamas war will remain contained.

Inflation and quarterly national accounts from the euro area are awaited later in the day, headlining a hectic day for the European economic news.

Across the Atlantic, trading may be impacted by reaction to reports on home prices, consumer confidence and Chicago-area business activity ahead of the Fed’s highly anticipated policy decision on Wednesday and the closely watched monthly employment report due later in the week.

U.S. stocks rallied overnight following last week’s sell-off, as investors looked ahead to the Fed’s rate decision and Apple’s…



2023-10-31 01:41:18

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