Global Index Update - Week Ending 1st August
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For the first time in recent weeks global markets took a noticeable step back yesterday which had a knock on effect in Asia.
Asian markets managed to half the losses seen in the US yesterday as concerns over the strength of the US economy, specifically their employment data saw end of week profit taking on many indexes. Despite this, Chinese markets managed to hold close to 7mth highs as data showed that the economy and manufacturing are back up to speed and that the stimulus measure implemented have started to show benefits. The PMI for July came in well above expectation, up on June's 51.0, July saw 51.7 and is at a 27mth high and above the 51.4 originally forecast.
Markets in Europe are expected to open lower as investors weigh up the latest news from the ECB. With prices increase by only 0.4% in July, down on June's 0.5%, the Eurozone is way below the ECB's target of 2% and sitting in what has been called, the "Dangerzone"
News in the US has been positive for the past few months yet even the 2 main indexes weren't safe from the large volume of profit taking seen yesterday. With confirmation that the economy has expanded by over 4% annualized, it was surprising to many that there was such negativity ahead of Friday's employment data. Expected to confirm that more than 237k jobs had been added according to a Reuters poll and down on last month's figures, this will be the 6th month in a row that over 200k jobs had returned to the market, something that has not happened since 1997. With the good news that the economy had reversed the poor performance of the first quarter it is possible that investors are starting to factor in geopolitical issues seen in Israel, the Ukraine, Libya and Syria as yesterday was the largest dip in the US markets since April.
Major Global Indexes:
Hang Seng at 24,5123.11 (-0.63%) SSE Comp at 2,185.30 (-0.74%)
FTSE 100 at 6,679.36 (-0.75%) Dax at 9,329.20 (-0.83%)
Dow Jones at 16,563.30 (-1.88%) S&
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DISCLAIMER The views, opinions, findings, and conclusions or recommendations expressed on this service are those of the author(s) and do not necessarily reflect the views of the Hexagon Capital Management. All market data within this release is for your general information and enjoys indicative status only. Hexagon Capital Management does not accept any responsibility for its accuracy or for any use to which it may be put. All share prices and market indexes delayed at least 15 minutes. 52 week high and low values are calculated from close price data.
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