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Markets interpret PMI data, position for Jackson Hole

Markets were mixed mid-week as traders positioned themselves ahead of the central bank symposium in Jackson Hole in the US state of Wyoming. A series of Purchasing Managers’ Indices (PMI) from various countries throughout the day should provide some stimulus while chipmaker Nvidia’s results are highly anticipated after the US market close on Wednesday.

Shane Strowmatt, LGT
Temps de lecture
5 minutes
Market chart
© Shutterstock

In Asia, stock markets were reacting to PMI data coming out of many countries on Wednesday. The Nikkei 225 was trading up 0.44% after Japan’s flash PMI for August came in at 54.3 points, up from July’s 53.8 points. In Australia, business activity was less positive, with the country’s flash composite PMI reading at just 47.1 points, the fastest contraction in 19 months. A reading below 50 points signals contraction. Australia’s S&P/ASX 200 nevertheless gained 0.6% in early trading Wednesday. In South Korea, the Kospi was down 0.5%. Chinese markets were mixed with Hong Kong's Hang Seng Index up 0.5%, while the Shanghai Composite lost 0.6%.

In New York, equity markets struggled to hang on to moderate gains from the start of the week. Focus was shifting from the surge in US Treasury yields to Jackson Hole and chipmaker Nvidia’s earnings. The Dow Jones Industrial lost 0.51%, falling to 34,288.83 points and the S&P 500 dropped 0.28%, closing at 4387.55 points on Tuesday. The Nasdaq-100 lost 0.19%, ending the day at 14,908.96 after surging 1.7% the day before.

Shares of chipmaker Nvidia remained highly volatile, falling 2.77% on Tuesday after gaining 8.47% on Monday. Traders continued to speculate about the company’s second-quarter earnings – due out later Wednesday. In May, the company had caused excitement among investors after posting a strong outlook, driving the company’s shares to a record high. The quarterly results should show to what extend the company can capitalize on the AI trend.

Microsoft submitted a new deal to regulators in the UK regarding its planned takeover of gaming company Activision Blizzard. UK regulators had rejected the original plan. Shares of Activision Blizzard were up 1.04%.

Sales of non-new homes in the US fell to their lowest level this year due to a lack of homes for sale and higher borrowing costs. Signed sales contracts in July fell by more than 18% when compared with the same month a year earlier. Mortgage rates have increased rapidly and have more than doubled in the last years with the average 30-year fixed rate home loan now beyond 7%.

Corporate news in focus: Q2 figures from Nvidia.

Economic data in focus: Manufacturing and Services Purchasing Managers’ Indices from several countries throughout the day, US new residential sales (16:00 CET), eurozone Consumer Confidence Indicator (16:00), weekly US EIA Petroleum Status Report (16:30).


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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.

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