Asia Pacific Leads
European and US markets took their cues overnight from Asia Pacific trading, largely echoing the 2% gains seen across the region yesterday. Improving sentiment saw industrial commodities bounce, and a further 14% rally in Glencore shares means they are close to flat for the week. Questions around whether the buying represents end of quarter window dressing or new optimism will likely be swept aside today by the release of crucial data in China.
The quarter ending yesterday saw many share markets record falls of around 8-10%, in many cases for the second quarter in a row. The last minute rallies improved the numbers, but investors remain divided on whether the current weakness is a correction or an unfolding crisis.
The manufacturing and services PMI’s due today speak directly to the fears of a slowing in global growth that has roiled markets recently. Expectations are that the official reads will land close to the break-even point of 50, but the private read on manufacturing will confirm the flash reading that shows contraction in manufacturing. Any number below 47 would likely spark further selling of shares and commodities.
Frequently Asked Questions about this Article…
European and US markets mirrored Asia Pacific trading trends due to the positive sentiment and gains seen across the region, which influenced global market behavior.
The 14% rally in Glencore shares contributed to improving market sentiment, bringing their weekly performance close to flat and reflecting broader industrial commodity gains.
There is debate among investors whether the recent rallies are due to genuine optimism or simply end-of-quarter window dressing, with upcoming data releases expected to provide more clarity.
In the last quarter, many share markets experienced declines of around 8-10%, marking the second consecutive quarter of such falls, despite last-minute rallies improving the overall numbers.
Investors are concerned about a potential slowdown in global growth, which has recently unsettled markets, with upcoming manufacturing and services PMI data expected to address these fears.
The PMI data is crucial as it will indicate the health of the manufacturing and services sectors. Numbers close to 50 suggest stability, while figures below 47 could trigger further market sell-offs.
If the PMI readings show contraction, particularly below 47, it could lead to increased selling of shares and commodities as investors react to signs of slowing economic growth.
Investors should pay attention to China's manufacturing and services PMI data, as these figures will provide insights into the country's economic health and influence global market trends.
Call 1300 880 160
Start a chat
Schedule a call
