U.S. stock-index futures (NKA) climbed and the Australian and New Zealand dollars rebounded after China’s official manufacturing gauge rose to a 16-month high. Crude oil slumped a third day as prospects of an imminent attack on Syria abated, while Asian index futures and gold fell. Standard & Poor’s 500 Index futures gained 0.6 percent by 7:12 a.m. in Tokyo, after the gauge slid 0.3 percent Aug. 30. The Australian currency, known as the Aussie, strengthened 0.3 percent to 89.29 U.S. cents, after sliding 1.4 percent last week. The New Zealand dollar added 0.4 percent. West Texas Intermediate crude sank 1.4 percent to $106.18 a barrel. Futures on Japan’s Nikkei 225 Stock Average lost 0.2 percent by 3 a.m. in Osaka, after falling 1.5 percent Aug. 30 in Chicago. Gold and silver lost at least 0.8 percent in early trading. China’s manufacturing purchasing managers’ index released yesterday came in at 51.0 for August, beating the median economist estimate and rising from 50.3 in July. HSBC Holdings Plc and Markit Economics issue the final reading of their gauge today after initial figures showed the biggest jump in three years for China, the No. 1 trading partner for both Australia and New Zealand. In the U.S., where markets are closed for a holiday, President Barack Obama delayed military action against Syria, saying he will seek congressional authorization. “Improving sentiment toward the Chinese economy and fading prospects for imminent western intervention in Syria may see the New Zealand dollar continue to recover,” Mike Jones, a currency strategist at Bank of New Zealand Ltd. in Wellington, said in an e-mail to clients. “The likely knee-jerk fall in oil prices today should help restore some of investors’ risk appetite” as Obama seeks approval from Congress, Jones said. Australian Rates Futures on Australia’s S&P/ASX 200 Index dropped 0.4 percent. Australia publishes a slew of economic data today, with building approvals estimated to rise 20 percent from a year earlier in July, after contracting 13 percent in June. Company operating profits climbed 0.9 percent in the second quarter, a second month of gains, according to the median of 20 economists’ projections compiled by Bloomberg. The Reserve Bank of Australia will keep the cash rate target at 2.5 percent tomorrow, a Bloomberg survey shows. Contracts on Hong Kong’s Hang Seng Index declined 0.6 percent in their most recent trading session, while futures on the Hang Seng China Enterprises Index of Chinese stocks bought and sold in the city lost 0.7 percent. The Bloomberg China-US Equity Index of the most-traded Chinese equities in New York fell 0.7 percent Aug. 30, fueling a 2.2 percent decline in the week and trimming its August advance to 2.6 percent. Indian Manufacturing The HSBC/Markit manufacturing PMI for China is expected to produce a final reading of 50.2 for August, according to the median estimate of 13 economists polled by Bloomberg. That would be the first time the gauge has exceeded 50, the threshold for expansion, since April, and an increase from 47.7 in July. HSBC and Markit also release their factory output index for India today, while manufacturing in the euro zone probably held gains in August, with economists predicting a reading of 51.3 for the month in the region’s official PMI, matching the result for July. The New Zealand currency, dubbed the kiwi, climbed to 77.48 U.S. cents, after weakening 1 percent last week and 3.2 percent in August. The yen slipped 0.2 percent to 98.36 per dollar today after the Bloomberg U.S. Dollar Index, which tracks the greenback against 10 major peers, rose a third day Aug. 30, bringing its weekly advance to 0.8 percent. Rising Yields In the U.S., 10-year Treasury yields increased two basis points, or 0.02 percentage point, to 2.78 percent Aug. 30, capping the fourth month of losses for the benchmark notes. U.S. consumer spending increased 0.1 percent in July, a Commerce Department report showed Aug. 30, compared with the 0.3 percent median forecast of economists. The S&P 500 has lost 4.5 percent since reaching its last record Aug. 2 amid concern the Federal Reserve will start reducing stimulatory bond purchases this month and the U.S. may take military action against Syria. Trading in the U.S. averaged about 5.5 billion shares a day in August, the second-slowest month in at least five years. While Republican and Democrat lawmakers praised Obama’s decision to go to Congress for approval to strike Syria, there are no plans so far for them to return to Washington for a vote before the start of the fall session Sept. 9. Blood Samples U.S. Secretary of State John Kerry said in TV interviews yesterday that hair and blood samples indicated sarin was used in the Aug. 21 attack on a suburb of Damascus that the U.S. and U.K. say was perpetrated by the government of President Bashar al-Assad. U.K. Prime Minister David Cameron failed to gain parliamentary backing for military action last week. The Dubai Financial Market General Index (DFMGI) jumped 3 percent yesterday, the most since March 2012. WTI dropped 1.1 percent Aug. 30, paring back a weekly jump of 1.2 percent. Brent crude futures lost 0.9 percent today to $112.94 a barrel. Gold slid 0.8 percent to $1,384.16 an ounce in early trading today, after dropping 1.6 percent over the previous two trading days. Silver sank 1.5 percent to $23.14 an ounce, following last week’s 2.3 percent drop, the first since the first week of August. Commodities outperformed stocks and bonds last month. The S&P GSCI gauge of 24 raw materials rose 2.9 percent in August, while the MSCI All-Country World Index of equities declined 2.3 percent and the BofA Merrill Lynch Global Broad Market Index of debt fell 0.4 percent. Portuguese Bonds Portuguese yields (GSPT10YR) jumped to the highest level in more than a month Aug. 30 after a court found that a proposed plan to end labor contracts for some state workers was unconstitutional, raising concern the government will struggle to meet its deficit targets. Yields on 10-year Portuguese securities climbed 16 basis points 6.73 percent, the highest level since July 19. The Stoxx Europe 600 Index fell 0.9 percent Aug. 30, extending its monthly decline to 2.4 percent, the most since June. The MSCI Emerging Markets Index dropped 1.9 percent last month as concern Fed stimulus tapering will reduce inflows into developing nations was exacerbated by the threat of an attack on Syria and signs of slowing growth from India to Indonesia. To contact the reporter on this story: Emma O’Brien in Wellington at [email protected] To contact the editor responsible for this story: Emma O’Brien at [email protected]
Posted on: Mon, 02 Sep 2013 12:53:42 +0000
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