Thursday, 2 October 2014

Stocks fall, global manufacturing slows

Stocks fell on Wednesday. The S&P 500 tumbled 1.3 percent while the STOXX Europe 600 fell 0.8 percent. The US 10-year Treasury yield fell 10 basis points to 2.39 percent.

Economic data on Wednesday were mostly uninspiring.

US data showed that manufacturing growth slowed in September. Markit's US manufacturing PMI slipped to 57.5 last month from 57.9 in August while the Institute for Supply Management’s index fell to 56.6 from 59.0.

Other US data on Wednesday showed that the private sector added 213,000 workers in September but construction spending fell 0.8 percent in August.

In the euro area, Markit reported on Wednesday that its manufacturing PMI for the region fell to 50.3 in September from 50.7 in August. The new orders sub-index fell to 49.3 from 50.7.

Another report on Wednesday showed that the Markit/CIPS UK manufacturing PMI fell to 51.6 in September, its lowest level since April last year, from 52.2 in August.

In China, the National Bureau of Statistics reported on Wednesday that its manufacturing PMI was 51.1 in September, unchanged from the previous month.

However, the Markit/JMMA Japan manufacturing PMI fell to 51.7 in September from 52.2 in August.

Also in Japan on Wednesday, the Bank of Japan's Tankan survey had provided a mixed picture. While the index for large manufacturers rose to plus 13 in the third quarter from plus 12 in the previous quarter, the index for large companies in the non-manufacturing sector tumbled to plus 13 from plus 19.

No comments:

Post a comment