The Opec+ organization announced that it would cut its oil production by two million barrels a day from November. This is the most comprehensive reduction in production for a long time in order to support oil prices, which have recently come under pressure. A move that could further fuel high inflation, particularly in Western industrialized nations.
The Dow Jones Industrial closed at 30'273.87 points -0.14% lower than the previous day and the S&P 500 slipped -0.2% to 3'783.28 points. On the Nasdaq, the indices were virtually unchanged from Monday's close. In turn, the yield of ten-year US government bonds rose again to 3.76%.
In the Asia-Pacific region, the stock markets trended inconsistently on Thursday. The Nikkei 225 in Tokyo rose by just under +1%, while the Hang Seng Index in Hong Kong after the brilliant rally the previous day (+6%) fell again by about -0.5%. The MSCI index for the Asia-Pacific region (excluding Japan) rose +0.5%. Mainland Chinese markets remain closed this week for the “Golden Week”. Continued geopolitical uncertainties are caused by a new missile test by North Korea.
Private-sector job creation in the United States remains strong. According to labor market services provider ADP, +208'000 new jobs were added in September, slightly more than the +200'000 analysts had expected on average. In addition, job growth in August was revised sharply upward from an initial +132'000 to +185'000. The ADP data are considered an indicator for the official labor market statistics from Washington expected on Friday.
In the US, according to the latest ISM survey data, service sector sentiment remained stable from the previous month and still well above the 50-point threshold, continuing to signal a growth trend in the sector. The ISM Non-Manufacturing PMI edged down 0.2 points to 56.7, also above the consensus of 56.0 points.
In the eurozone, S&P Global's Purchasing Managers' Index for the private sector fell from 48.9 to 48.1 points in September, its lowest level since January 2021. Companies in both the industrial and services sectors are being weighed down mainly by the energy crisis, rising inflation and increasing concerns about the economic outlook, S&P Global commented.
In the UK, business sentiment in the industrial and services sectors also deteriorated, although not as much as expected. The corresponding Purchasing Managers' Index slipped 0.5 points to 49.1 in September - the lowest reading since January 2021.
According to a survey by the Munich-based economic research institute Ifo, a long-lasting phase of high inflation must be expected in Germany. Prices for gas and electricity will continue to rise and price increases will continue to increase almost across the board in the coming months. Another reason why inflation is not expected to cool is the increase in the minimum wage as of October.
|08:00||GE||Industry Orders (August, m/m)||-1.1%|
|11:00||EZ||Retail Sales (August, m/m)||+0.3%|
|14:30||US||Initial Jobless Claims (weekly)||193,000|
|GE||Merck KGaA||Capital Market Day|
|UK||Imperial Brands||Q4 Sales|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, E-Mail: email@example.com
Source: LGT Bank (Switzerland) Ltd.
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