It is a tough trading day in Tokyo where the Nikkei 225 is down over 2 percent – only during the dip in June has the index been lower during the year. Just like at the beginning of the week, it is the automotive shares that act lower. Mazda, Mitsubishi, subcontractor Denso and Nissan are all down 6-9 percent on Friday.
Things are somewhat calmer in Hong Kong, where the Hang Seng is only just below zero. The real estate giant Country Garden rushes a whopping 9 percent.
Mainland Chinese stocks are also backing off cautiously after this morning’s purchasing managers’ figures leaked. The manufacturing PMI rose surprisingly to come in at 50.1, compared to the forecast of 49.6. However, the service sector increased less than expected, 50.6 to compare with August’s 52.6. Shanghai’s composite index is down 0.2 and Shenzhen’s component index is down 0.5.
The European futures point to sideways or slightly downward trading. The Stockholm Stock Exchange is no exception, pre-trade at IG indicates a drop at opening of around 0.2 percent.
News from the night and morning from Nyhetsbyrån Direkt:
The American stock markets offered sharp declines on Thursday. Apple fell after a downgrade by Bank of American. Occidental Petroleum fared better after continued purchases from Berkshire Hathaway. At the close, the S&P 500 had fallen 2.1 percent to 3,640. Calculated from the close of the Stockholm Stock Exchange, the S&P 500 was unchanged.
American sportswear manufacturer Nike reports earnings per share of $0.93 per share for the first quarter of the broken fiscal year. Expectations were for $0.92 per share, according to S&P Global Market Intelligence. The turnover landed at 12.7 billion dollars, against the expected 12.3 billion dollars.
The Fed will begin to balance growth concerns against its inflation targets, but not until inflation is clearly moving back toward the 2 percent target. This was said by the head of the Fed in Cleveland, Loretta Mester, on Thursday evening, according to Reuters.
The shareholder Softbank sells its stake in Sinch to Neqst D2 and Sinch’s co-founder/acting CEO Johan Hedberg. The share amounts to around 5 percent of the outstanding shares. After the sale, Softbank will not own any shares in Sinch and Neqst D2, which is already Sinch’s largest shareholder, will own about 18.6 percent of the shares.
The activist fund Elliott Investment Management controls 5.53 percent of the votes in Swedish Match. On September 5, the activist fund controlled 5.25 percent of the vote.
The development on the Asian stock markets is negative on Friday morning. At the same time, the dollar loses against both the krona and the euro. US interest rates show little net change.
China’s manufacturing PMI rose to 50.1 in September from 49.4 in August, expected to be 49.6. In the services sector, the PMI fell to 50.6, compared to 52.6 in August. The weighted PMI fell to 50.9 in September compared to 51.7 in August.
Industrial production in Japan rose by 2.7 in August compared to the previous month. At an annual rate, industrial production rose 5.1 percent. Analysts expected that industrial production in August would have increased by 0.2 percent.
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The Fed’s favorite metric
The inflation measure PCE is expected to have increased by a modest 0.1 percent from July to August. Core PCE, on the other hand, is forecast to rise by 0.5 percent on a monthly basis. If that happens, inflation is still too high for the Federal Reserve.
Inflation in Europe
Inflation data comes in Europe in the form of CPI for France and Italy. The broader EU figure is expected to rise to 9.7 percent and a high outcome may well pressure the ECB to increase the rate of interest rate increases.
The housing developer Bonava and the property giant Fabege distribute 1.75 and 1 kroner, respectively. Printed circuit board manufacturer Ncab also separates the dividend of 30 öre, which according to the textbook should lower the share by the same amount.
Carnival for cruise lines?
Travel has been robust during the summer, despite the weakening of consumer sentiment. Now a slowdown is feared, which could weigh on the American cruise operator Carnival, which has already collapsed on Wall Street. Report presentation today.
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