3 May 2016
US equities open with steep losses
On Tuesday, Wall Street opened with yet another downbeat trading session as global growth concerns resurface on weak Chinese and UK manufacturing data.
In early trade, major US equity indices are showing a cut of over 0.7%. At the time of writing, the Dow Jones Industrial Average slumps 130 point at 17,760 while S&P 500 fell 14 point to 2,067. Tech heavy Nasdaq Composite index fell over 0.75% or 37 points to 4,780.
Global growth concerns worrying investors
Investors seem to move away from risky assets, such as stocks and commodities, on renewed concerns over China led global economic slowdown. Earlier on Tuesday, weaker-than-expected Chinese and UK manufacturing PMI and a surprise interest rate-cut by RBA continued to point towards deteriorating health of the global economy.
European stocks too resumed their downtrend on Tuesday and are currently trading with a cut of anywhere between 0.75% to 1.4%. The peripheral European markets are lower by over 2%. Meanwhile, Asian stock closed mixed with Chinese markets ignored weak economic data and moved higher. Australian equity indices also soared on unexpected rate cut by RBA.
With only monthly auto sales number, there is little in terms of any major economic releases from the US on Tuesday. However, market players will scrutinize speech from Cleveland Fed President Loretta Mester, who is a voting member of the policy setting committee. Atlanta Fed President Dennis Lockhart, a non-voting member, will also give a speech on the economic outlook and monetary policy in Jacksonville.
In early trade, major US equity indices are showing a cut of over 0.7%. At the time of writing, the Dow Jones Industrial Average slumps 130 point at 17,760 while S&P 500 fell 14 point to 2,067. Tech heavy Nasdaq Composite index fell over 0.75% or 37 points to 4,780.
Global growth concerns worrying investors
Investors seem to move away from risky assets, such as stocks and commodities, on renewed concerns over China led global economic slowdown. Earlier on Tuesday, weaker-than-expected Chinese and UK manufacturing PMI and a surprise interest rate-cut by RBA continued to point towards deteriorating health of the global economy.
European stocks too resumed their downtrend on Tuesday and are currently trading with a cut of anywhere between 0.75% to 1.4%. The peripheral European markets are lower by over 2%. Meanwhile, Asian stock closed mixed with Chinese markets ignored weak economic data and moved higher. Australian equity indices also soared on unexpected rate cut by RBA.
With only monthly auto sales number, there is little in terms of any major economic releases from the US on Tuesday. However, market players will scrutinize speech from Cleveland Fed President Loretta Mester, who is a voting member of the policy setting committee. Atlanta Fed President Dennis Lockhart, a non-voting member, will also give a speech on the economic outlook and monetary policy in Jacksonville.