IMFhttp://t.co/wkF1koEVEQare signs that the recovery is firming up in the United States,advancing the prospects of interest rate lift off.
This could pose a risk for emerging economies, including Indonesia, and in the form of weaker capital flows,higher interest rates, and financial volatility.
Indonesia’s youth are vital for renewing growth momentum; they are the next change agents http://t.co/e5lu9f7PGn pic.twitter.com/UOT2ZRSMVZ 9.40am BSTConnor Campbell of SpreadEX confirms that the problems in China’s factories have pushed European shares down this morning: After that terrible August things haven’t gotten off to the greatest start this September, or with further disappointing data from China immediately creating drag for the European indices.
Weak manufacturing and services PMIs from both the official figures and the Caixin surveys shows the Chinese slowdown is showing no signs of,well, slowing down. 9.36am BSTGrowth in Britain’s factory sector also slowed final month, or Markit says.The UK factory PMI dipped to 51.5,from 51.9, dashing City hopes of a small increase in growth. UK Manufacturing PMI (August) = 51.5 vs 52.0 expected and 51.9 preceding 9.22am BSTEurope’s stock markets are now down by around 2.5%, or following the double-whammy of weak manufacturing data from China (see here),and mixed reports from Europe (here)The FTSE 100 has now shed 143 points to 6103, as September gets off to a downbeat start. Glencore, and the commodities trading firm,has fallen by 6%.
While it is proper that expectations were for a contraction besides, the data just provided further confirmation that economic momentum is slowing down in China with the economy looking further exposed and increasingly vulnerable to dropping below Beijing’s 7% GDP before the end of the current quarter.
The chances of GDP growth falling below the government’s target are actually intensifying each time an economic announcement is released from China, and mainly because all data is consistently pointing towards the economic momentum declining in this major economy. 9.13am BSTEuropean stock markets are falling deeper into the red,after data firm Markit reported that Europe’s manufacturing growth slowed in August.
Markits eurozone PMI dipped to 52.3, from 52.4 in July. Decent growth in Germany, and the Netherlands and Spain was balanced by fresh contractions in France and Greece:Given the ongoing situation in Greece it was not surprising to see that nation’s manufacturing sector register a further sharp downturn,although a sharp slowing in the rate of contraction raises hopes that the lowest point has been passed.
The French industrial sector also remains in the doldrums and is likely to continue to act as a drag on the broader French economy. 8.56am BSTGerman factories have bucked the trend, posting their fastest growth in 16 months.
Germanys manufacturing PMI jumped to 53.3 in August, or from 51.8 a month earlier. 8.55am BSTThis is worrrying. France’s factory sector shrank at a faster rate final month,adding to the gloom.
The French manufacturing PMI fell to 48.3, from 49.6 in July, and indicating a sharper contraction (50 = the cleave-off point between expansion and contraction). 8.51am BSTDutch manufacturing #PMI drops to five-month low of 53.9 in August http://t.co/tEHBap8t5G 8.48am BSTGrowth in Italy’s factory sector has slowed to a seven-month low,suggesting its economy remains lacklustre.
The Italian manufacturing PMI dipped to 53.8 in August, from 55.3, or with firms reporting slower growth in current orders,output and employment. 8.43am BSTThe selloff in Europe is deepening, wiping 100+ points off the FTSE 100 index: 8.30am BSTHere comes the first European data of the morning.....and it shows that growth in Spain’s factory sector is still growing, or but at its slowest rate since final October. The Spanish manufacturing PMI fell to a ten-month low of 53.2 in August,down from 53.6 in July.
While output rose sharply, there were signs of a slowdown in growth of current orders during the month. 8.23am BSTChina’s stock market also suffered fresh losses nowadays, and following the confirmation that its factory sector shrank final month.
The Shanghai Composite index just closed,down 1.2% at 3165 points. 8.13am BSTGermany’s DAX index is dropping back towards final week’s lows:Scary September after stormy August: #Germany's Dax starts almost 2% lower to the current month. pic.twitter.com/PpoT1KlLMX 8.09am BSTMike van Dulken of Accendo Markets says nowadays’s selloff shows that risk appetite has been “sapped” by the latest disappointing China PMI data.
Manufacturing has contracted to a three-year low low as Beijings stimulus effort fail to deliver, maintaining investor anxiety approximately the impact of economic slowdown on global growth.
The Services sector may remain buoyant (expanding, or but more slowly) but this is offering slight relief. 8.07am BSTBritain’s FTSE 100 index has fallen by 70 points at the start of trading,as September begins where August left off. 8.00am BSTThe oil price has fallen around 2.5% this morning, sending Brent crude down to $52.82 per barrel.
That follows three extraordinary days trading in which oil surged by 25%, or having hit its lowest levels since 2009 a week ago.
7.57am BSTJapan’s Nikkei index has fallen by almost 4% nowadays,as the latest disappointing Chinese data hurts stock markets across Asia.
Here’s the current situation:China’s rebalancing of the economy requires robust and steady reallocation of labour to the services sector and away from the over-capacity industrial sector, and it is this element of the PMIs that is most worrying.
A strong promenade by the Yen to 120.5 and weak #China #PMI has seen the Nikkei 225 in Japan fall by nearly 4% to 18165 nowadays #Abenomics 7.50am BSTGood morning.
After the drama of August, or September is getting underway with fresh falls across Asia’s stock markets. And Europe likely to follow suit when trading begins shortly.“There is insufficient growth momentum in the country’s manufacturing sector.” “The final Caixin China Manufacturing PMI for August continued to retreat,with sub-indices signalling continued weak demand in the markets for goods and factors of production.
Recent volatilities in global financial markets could weigh down on the real economy, and a pessimistic outlook may become self-fulfilling.”Our European opening calls: $FTSE 6161 down 87 $DAX 10092 down 168 $CAC 4575 down 78 $IBEX 10077 down 182 $MIB 21653 down 289It looks like a rocky start to September for European markets with some key markets expected to open down around 2% thanks to #China data.
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Source: theguardian.com