On Thursday (7 Sep) morning, all Asia Pacific indices fell after US published its August PMI as S&P Global Service PMI dropped to 50.5 from 52.3 in the previous month, but ISM Non-Manufacturing PMI jumped to 54.5 from 52.7 in the previous month, which raised concerns of elevating inflation to maintain longer and led to the Fed keeping rates at a higher level.
The market is also anticipating China trade balances for August coming out this late morning, which is expected to remain in negative territory, but better than the previous month. Australian ASX 200 led in loss with 1.2%, moving the index down to 7,170. Shenzhen SSZI followed the loss at 1%, dropping an index to 10,410. Hong Kong’s HSI also lost by 0.8%, plunging the index to 18,300. South Korean KOSPI dropped by 0.7%, falling to 2,540. While other indices remained on downside with lesser losses.
Meanwhile, US Futures indices are still trending down, the S&P 500 drops from the 4500 level to 4,470 and NASDAQ also drop below 15,500 to 15,370. The US dollar is still trending up as the DXY continues to move up to 104.8 and weakens other currencies.
WTI crude oil swung up to $87.3 per barrel and Brent also swung up to $90.4 per barrel. Natural gas dropped to $2.5 from the range between $2.65 to $2.75 last week. In addition, gold dropped from $1,950 to $1,944 per Troy ounce.
