A rise in manufacturing output — with two separate readings showing improvement in August — threw positive light on the outlook for the global economy. Steadying growth in China’s vast manufacturing sector, seen as an economic bellwether, could ease the pressure on the Chinese government to launch more significant stimulus measures. A euro zone reading of manufacturing output rose for the fourth consecutive month in August, according to data from Markit. The result was helped by a strong improvement in German manufacturing conditions, rising to their highest level in more than two years, as export demand rebounded.
Stocks Hold Slight Gains as Syria Fears Fade
interests. “To be sure, a Syria strike no longer being imminent is reason for relief but that does not mean that Syria has dropped off the geo-politics radar,” said Vishnu Varathan of Mizuho Bank Ltd. in Singapore. After surging the day before, European markets were steady or slightly lower. Britain’s FTSE 100 closed down Tuesday 0.58 percent to 6,468.41, while Germany’s DAX fell 0.77 percent to 8,180.71. France’s CAC-40 shed 0.8 percent to 3,974.07.
Stocks mostly higher as Syria strike fears fade
One of the main underlying factors is what could be US military action in Syria. As uncertainty grows, some investors have turned out of stocks to gold as a safe haven. (Read: Spot gold rises 1% after Israeli missile test ) Simultaneously, rising interest rates are viewed as a negative for stocks. Since May, bonds have been sold off as the market anticipates a tapering of the Federal Reserve Banks $85 billion per month bond buying program. Lower bond prices mean higher interest rates which, in turn, further discount stocks. However, the bond selloff was slightly abated earlier last week as some investors took to the safety of US Treasury bonds when a strike against Syria seemed imminent.
European Stocks Decline; Benchmark Stoxx 600 Index Falls
and a whole lot of other files on things that are being dusted down as bankers consider ‘let’s try and get this away now, now that the market seems to be feeling better,” RLAM’s Mitchell said. However, Neil Veitch, portfolio manager at SVM Asset Management and a Vodafone shareholder said fund firms would be unwise to rush into big spending sprees until the deal’s final details are confirmed as investors do not yet know exactly how much paper they will get. It is also not clear how many investors will be forced to sell their new U.S. stock quickly because they are limited to holding UK or European stocks.
Bumper Vodafone sale to help UK stocks
Stocks may struggle to rally in September, said Randy Frederick, managing director of active trading and derivatives at the Schwab Center for Financial Research. The S&P 500 logged its worst month in over a year in August as investors fretted about when the Federal Reserve will cut stocks to buy its economic stimulus. The Fed’s September meeting is when many on Wall Street think the central bank will begin winding down its massive bond-buying program. Lawmakers in Washington may also throw investors a curve ball. To keep the government running, Congress needs to pass a short-term spending bill before the fiscal year starts Oct. 1.