Traders also noted supportive comments from the European Central Bank (ECB) after its president, Mario Draghi, said in an interview over the weekend that it was ready to do what it takes to keep its medium-term inflation target on course.
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“The impact on the euro area of a potential further slowdown in China ultimately hinges on the extent to which this slowdown spills over to other emerging markets more generally, and the degree to which the resulting loss of confidence affects global financial markets as well as global trade”.
Before Friday’s non-farm payrolls, the markets will have a chance to gauge the health of the US economy through the ADP employment data and the ISM report on services sector sentiment due later in the session.
“It’s been a volatile start to markets in China this morning following the latest data”, said Deutsche Bank strategist John Reid.
According to data released by the European Union’s statistical office, the producer price index for the domestic market fell 3.1% year-on-year following a 2.6% decline in the previous month. Because of that, numerous world’s central banks, including the Fed, had put off potential rate hikes as a more “expensive” currency discourages export trade.
Movers: Shares of A.P. Moeller-Maersk AS (MAERSK-B.KO) added 3.2% after the Danish shipping and oil company said its Maersk Line container shipping unit would cut 4,000 staff (http://www.marketwatch.com/story/maersk-line-to-cut-staff-as-market-deteriorates-2015-11-04-34852644) by the end of 2017 and step up cost cuts in response to deteriorating market conditions. The Japanese currency weakened 0.1 per cent to 121.21 per dollar.
Euro zone bond yields rose. German 10-year yields rose 4.4 basis points to 0.57 per cent. Italian and Spanish equivalents rose 8.7 and 8.5 bps to 1.57 and 1.77 per cent respectively.
Oil prices fell in Asia on the prospect of weak Chinese demand. Brent crude, the global benchmark, was last down 48 cents a barrel at $49.08. France’s CAC 40 also rose 0.9 percent. This will be her first speech since she said last month that the central bank could still raise rates at its December 15-16 meeting.
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On the flip side, the euro reached as high as 1.0833 against the Swiss franc, compared to 1.0790 hit late New York Wednesday.
