Asian stock markets start the new trading week with losses. In Hong Kong, the Hang Seng falls about -2.5% on Monday. Chinese chip stocks listed in Hong Kong are leading the losses, as they suffer from new export regulations from the US. The Shanghai Composite loses -0.4%.
On the New York stock exchange, the better-than-expected job market report on Friday caused significant losses. The S&P 500 fell -2.8% and the Dow Jones lost -2.1%. But the biggest losers were technology stocks: the Nasdaq Composite slumped -3.8%. The US dollar strengthened against the euro and the Swiss franc. Ten-year US government bond yields rose to 3.88%, remaining below the twelve-year high of around 4% at the end of September.
Investors are now turning their attention to the earnings season, which will show how companies have fared in an environment of rising interest rates. It kicks off on Friday in the US with the earnings of Wall Street banks JPMorgan Chase and Citigroup. However, analysts' expectations for the third quarter are subdued.
The US economy added more jobs than expected in September. Excluding the agricultural sector, 263’000 new jobs were created, compared with an analyst consensus of 250’000. Although this leaves employment growth below the 315’000 jobs recorded in August, the positive trend seems unbroken. This is also reflected in the unemployment rate, which fell from 3.7% to 3.5%. The Federal Reserve will have been watching the further rise in wages closely. Average hourly wages rose by +0.3% month-on-month and by +5.0% year-on-year, albeit at a somewhat slower pace than the +5.2% recorded in August.
In Germany, the prices of imported goods rose more strongly again in August, after the strong increase in the previous months had weakened somewhat. Import prices rose by +32.7% year-on-year, the strongest increase since 1974. The inflationary trend is being driven primarily by the sharp rise in energy prices.
|10:30||EZ||Sentix Economic Indicator (October)||-31.8|
|17:00||US||Meeting International Monetary Fund (IMF)|
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