Wednesday, 4 September 2019

Markets mixed as US manufacturing data add to fears of more weakness ahead

Markets were mostly lower on Tuesday.

The S&P 500 fell 0.7 percent, the STOXX Europe 600 fell 0.2 percent while the Nikkei 225 was flat.

US economic data on Tuesday were mixed.

The ISM manufacturing index fell to 49.1 in August from 51.2 in July but Markit's manufacturing PMI for August came in at 50.3, above an initial estimate of 49.9.

Jim O’Sullivan chief US economist with High Frequency Economics, wrote that while the ISM data does not yet signal a recession, it was “weaker than expected” and “will undoubtedly add to fears that more weakness is ahead”.

US construction spending rose 0.1 percent in July, below expectations but rebounding partially from a 1.3 percent fall in June.

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