The hustle and bustle of traders on the New York Stock Exchange floor sets the stage for an exciting day in the financial world. Welcome to CNBC Daily Open, where we bring you the latest updates from international markets, ensuring you’re always in the loop, no matter where you are. Interested in more? Subscribe here to stay informed and ahead of the game.
Cooler-than-expected inflation
– The personal consumption expenditures price index for August saw a 0.1% increase for the month, with a year-over-year rise of 2.2%. This figure fell below expectations from the Dow Jones survey, which anticipated a 2.3% increase.
– Core PCE, excluding food and energy prices, also rose by 0.1% in August and 2.7% from a year ago, but economists were anticipating a 0.2% increase and a 2.7% rise, respectively.
Chinese stocks skyrocket, U.S. markets mixed
– The Dow Jones Industrial Average closed at a record high as the only major index to rise, while U.S. markets traded in a mixed manner on Friday. Asian-Pacific markets followed suit with China’s Shanghai Composite soaring over 8%, fueled by a surge in Chinese property stocks.
– In contrast, Japan’s Nikkei 225 slumped approximately 4.7% in response to results of the Liberal Democratic Party election last Friday.
China’s factory activity shrinks less than expected
– China’s manufacturing purchasing managers’ index for September recorded 49.8, indicating a contraction for five consecutive months. While still below 50, the figure exceeded economists’ forecast of 49.5.
Enforcing oil output cuts
– The OPEC+ alliance is tightening scrutiny on member countries that fail to comply with oil output cuts, driven by a report suggesting Saudi Arabia may abandon its $100 oil price target. This could have far-reaching implications on oil prices and global markets.
(Pro) Volatile month ahead?
– Historically, September has been a challenging month for stocks, yet current market performance suggests otherwise. Concerns now shift to October, known for its volatility and potential market upheavals. Keep an eye on the upcoming nonfarm payrolls report for September as a key driver of market movements.
In conclusion, this September has defied expectations, with stocks maintaining positive momentum amidst historical uncertainties. As markets navigate through challenging waters, economic data, rate cuts, and investor sentiments continue to shape the trajectory of global markets. Stay informed, stay vigilant, and stay ahead of the curve.
