Changes in futures aren’t necessarily reflected in market moves after the opening bell.
Advertisement
The manufacturing sector Purchasing Managers’ Index is compiled by information services company Markit.
A similar official survey on the services sector showed the official non-manufacturing PMI stood at 53.4, indicating the same pace of growth as in the previous month. That said, the PMI averaged 52.1 for the July-September quarter, above the prior reading of 51.8.
Zach Witton, a deputy chief economist at EEF, the manufacturers’ organisation, said: “Today’s data suggests the challenging export environment and weak demand for investment goods in the oil and gas sector has started to take a toll on business confidence”. With so much uncertainty, the Dollar has seen limited volatility on Thursday morning.
But a disappointing batch of third-quarter corporate earnings could cause the recent rebound in markets to fade quickly, according to Mr. Batstone-Carr.
Asian markets extended gains after the economic data was released. South Korea’s Kospi rose 0.8 percent to 1,979.32 and Australia’s S&P/ASX 200 advanced 1.8 percent to 5,112.10.
In Japan, Mitsui Chemicals rose by 2.88% while Mitsubishi Chemicals was 2.30% higher as the benchmark Nikkei 225 index gained 1.92% to 17,722.42.
The official government manufacturing gauge is heavily weighted toward large enterprises, while the Caixin survey taps a smaller sample size and places greater emphasis on smaller firms.
Chinese financial markets will not have an immediate chance to react to the PMIs as they are closed Oct. 1 to Oct. 7 for national holidays. With inflation in negative territory, many analysts predict that the European Central Bank (ECB) will look to expand quantitative easing in order to provoke price pressures in the currency bloc. Australian shares were 0.8 percent higher. Economists expected that index to remain unchanged.
From worries over a slowing Chinese economy, uncertainty over interest rates and a scary slide in commodity prices, stocks have been hit with one blow after another in the past three months. The Fed’s decision to hold rates at record lows in September helped fuel fears of slowing global growth.
According to the index, Indian manufacturers shed jobs in September due weaker increases in new business inflows and cautious approach to costs. The dollar rose 0.3 percent to 120.24 yen after nudging up overnight versus its Japanese counterpart. Brent crude rose 0.9 percent to $48.83 a barrel.
Advertisement
Spot gold was last at $1,115.2/1,115.5 per ounce on Thursday, up just $0.2 on Wednesday’s close.
