The Chinese industry is suddenly shrinking in September  and Nasdaq declines for the fourth session in a row

The Chinese industry is suddenly shrinking in September  and Nasdaq declines for the fourth session in a row

The Chinese industry is suddenly shrinking in September  and Nasdaq declines for the fourth session in a row :We are closing in on the September trading process, which has seen a lot of confusion, especially because of the Evergrande crisis that has affected stock markets over the past and current week. 

On the commodity market, after oil had recorded its highest levels in almost three years,

it fell again after the announcement by the Energy Information Administration of a significant and unexpected increase in oil inventories.

Evest follows all details in the following report:

 

topics:

Oil continues to fall due to increased inventories

A loss in Japan and gains in China

The Chinese industry is suddenly shrinking in September

The Chinese Caixin improved slightly in September

Japanese industry was significantly weaker in August

Nasdaq completes the fourth day in a losing streak

Adjusted UK GDP growth upwards for the second quarter

Oil continues to fall due to increased inventories

Oil began to show new signs of declining, as it continued to fall for the second session in a row following the announcement of a significant increase in US inventories.

The cost of Brent crude futures for November on the London Stock Exchange ICE Futures is $78.25 per barrel,

$0.5٪ lower than the closing price of the previous session. 

The price of WTI crude futures for November in electronic trading on the New York Mercantile Exchange (NMX) was $74.75 per barrel,

0.11% below the level when the market closed on September 29.

According to the Department of Energy, US commercial oil reserves increased last week by 4.58 million barrels to 418.54 million barrels. 

The American Petroleum Institute (API) estimated that there is a lower rise of 4.1 million barrels.

Experts interviewed by Bloomberg expected inventories to decline by 2.15 million barrels.

Meanwhile, reserves at Cushing Station, where traded oil is stored on the NYMEX stock exchange,

increased by 200 thousand barrels, while API recorded a jump in reserves by 359 thousand barrels.

Last week’s growth in United States gasoline inventories amounted to 193 thousand barrels,

while experts expected an increase of 1.5 million barrels.

Distillate inventories rose by 384 thousand barrels (a decrease of 1.4 million barrels was expected).

The oil market is being pressured by the marked strengthening of the dollar,

with the ICE dollar index jumping to its highest level in about a year on Wednesday and losing about 0.1% on Thursday.

A loss in Japan and gains in China

Stock indices in the Asia-Pacific region show multi-directional dynamics on Thursday: The Nikkei 225 index declined, and the Chinese CSI 300 index rose.

While the US S&P 500 index’s futures are rising by 0.52%. 0.43%.

China had a key role, with the worrying state of the domestic economy,

owing to energy problems and high raw material costs affecting industrial production.

In the meantime, the path of the global economy is worrying as it is affected by the pandemic, causing investors to be cautious.

With regard to the overall situation in Asia, industrial production fell by 3.2% in August, while retail sales declined for the first time in six months,

unlike the manufacturing sector, which improved in September.

In Japan, a few hours after Fumio Kishida was elected as the leader of the ruling Liberal Democratic Party (LDP) and thus prime minister

, the Nikkei index showed marginal losses of 0.31% at 2,9452.66 points.

Hong Kong’s Hang Seng index fell by 0.43% to 24,560 points, unlike the Shanghai Composite and Shenzhen Component indices,

which recorded a 1.81% gain at 14333.84 points.

The Kospi index rose by 0.28% to 3068.82 points, and the S & P/ASX 200 index in Australia rose by 1.88% to 29452.66 points.

The Chinese industry is suddenly shrinking in September

According to official figures, the gloomy mood suddenly took over the Chinese industry in September.

The PMI in the manufacturing sector fell to 49.6 (August: 50.1),

according to data from the National Statistics Agency and the China Federation of Logistics and Purchasing (CFLP). 

This is the first time since February 2020 that the index fell below the important 50 mark.

The Wall Street Journal consulted economists’ expectations at 50.1 points.

The Chinese Caixin improved slightly in September

In the Chinese industry, activity recovered in September.

The Purchasing Manager’s Index (PMI) in the manufacturing sector set by Caixin Media Co and Research House Markit rose to 50.0 (August: 49.2) points.

The index is based on a survey of about 400 companies, with greater attention to small, privately-owned companies.

Japanese industry was significantly weaker in August

The Japanese industry suffered a major setback last month.

According to the Government, production fell by 3.2 percent compared to the previous month and is therefore much higher than expected. 

Unanimously, economists predicted a rate of -0.5 percent.

The main reason for the significant decline is the shortage of chips in the automotive industry.

 

Nasdaq completes the fourth day in a losing streak

US stock indices ended Wednesday without a single dynamic, with the Nasdaq Composite falling for the fourth straight day, while the Dow Jones Industrial Index and Standard & Poor’s 500 rose.

The Chairman of the Federal Reserve Board, Jerome Powell,

said that the growing growth in consumer prices in the United States was associated with the recovery of economic activity after the Covid- 19 pandemic,

and did not mean that such an inflationary system would continue in the future

. He also reiterated that the Fed would raise the benchmark interest rate if “the significant increase in inflation causes serious concerns”.

Investors remain concerned about the rising debt limit.

Republicans in the Senate stopped another attempt by Democrats to raise the national debt limit,

leaving them with the need to develop a new initiative to avoid default. 

In the meantime, Janet Yellen, the US Treasury chief, warned earlier that her department could run out funds by October 18,

if Congress did not raise the borrowing cap.

Adjusted UK GDP growth upwards for the second quarter

The British economy grew in the second quarter of 2021 faster than initially expected. 

GDP increased by 5.5 (temporarily: 4.8 percent compared to the previous quarter,

as announced by the Statistics Agency in a second publication. 

The economists who surveyed the Dow Jones Newswires had predicted a confirmation of the initial figure.

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