With the U.S. and Canadian markets closed for Labor Day, global trading saw mixed activity. The dollar strengthened by 0.5% against the Japanese yen, but the overall dollar index remained unchanged.
Stock Market Movements
European stock indices dipped slightly, with Germany, France, Italy, Great Britain, and Spain all down by about 0.1%. In Asia, market performance varied more significantly: China’s stocks gained 1.1%, New Zealand was up 0.9%, and Singapore rose 0.6%. However, Hong Kong’s Hang Seng index fell sharply by 1.7%.
Bond Yields and Commodities
In bond markets, 10-year government bond yields increased by 7 basis points in Italy, 4 in Great Britain, 3 in Germany, and 2 in Japan. Bitcoin prices rose 1.8%, while oil and gold prices remained mostly stable.
Manufacturing PMI Reports
Manufacturing Purchasing Manager Index (PMI) reports provided a glimpse into the state of global manufacturing:
- Eurozone: The manufacturing PMI for the Eurozone remained low at 45.8 for the third straight month, indicating continued decline. A PMI below 50 suggests deteriorating conditions, and the Eurozone’s manufacturing sector has been under this threshold for 26 months. France and Germany, two of the largest Eurozone economies, reported PMIs of 43.9 and 42.4, respectively, marking multi-month lows. Ireland was the only Eurozone country with a PMI above 50, at 50.4.
- China: China’s official manufacturing PMI dropped to a 6-month low of 49.1, while a private survey showed a slight improvement at 50.4. Non-manufacturing PMI rose slightly from its previous low.
- Japan and Australia: Both countries saw minor improvements in their PMIs, with Japan at 49.8 and Australia at 48.5, still below the 50 mark indicating growth.
- Other Asian Economies: India continued to show strong manufacturing growth with a PMI of 57.5, though slightly slower than in previous months. Taiwan, South Korea, the Philippines, and Thailand all reported PMIs above 50, while Malaysia and Indonesia lagged behind.
- Other Regions: South Africa and Turkey reported PMIs below 50, reflecting continued manufacturing struggles. Russia’s PMI dropped to a 13-month low of 52.1, while Eastern European economies like Hungary and Poland showed mixed results.
- Nordic Region: Sweden saw a rebound in its PMI to 52.7, while Norway’s fell to 52.1.
- Switzerland and Brazil: Switzerland’s manufacturing index unexpectedly rose to 49.0, while Brazil’s PMI fell to an 8-month low of 50.4.
Economic Growth Reports
Several countries also released GDP data:
- Italy confirmed a 0.2% quarterly growth rate, with an annual increase of 0.9%, the highest in five quarters.
- Cyprus reported stronger growth, with GDP rising 0.7% quarter-on-quarter and 3.7% year-on-year.
- Turkey saw only a slight GDP increase of 0.1%, marking the slowest annual growth since the pandemic’s peak impact.
Additional Economic Updates
- Australia: Building permits in Australia rebounded by 10.4% in July, while business profits declined both quarterly and annually.
- Inflation Data: Inflation in Indonesia remained at a low of 2.1%, down significantly from last year’s peak. Kazakhstan’s inflation rate dropped to 8.4%, while Pakistan reported a year-on-year inflation rate of 9.6%, much lower than its recent peak.
- Producer Prices and Retail Sales: Italian producer prices showed a smaller decline than in previous months. Retail sales in the Netherlands and Switzerland both grew by about 2.6% to 2.7% year-on-year.
In summary, the global markets experienced a varied performance amid the quiet U.S. and Canadian Labor Day, with mixed signals from manufacturing sectors and economic data across different regions.