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Markets mixed ahead of key economic data

Japanese shares rose on Wednesday, but gains across Asia were uneven as investors weighed contrasting regional economic signals. In the US, the Dow Jones and S&P 500 closed lower on Tuesday, while the Nasdaq-100 advanced. Wednesday’s calendar includes UK and US GDP, inflation figures from Germany, France and Italy, the US ADP Employment Report and widely-watched US personal consumption expenditures data. Micron is also due to report quarterly results on Wednesday. Investors expect earnings to benefit from AI demand and higher memory prices.

  • Data
  • Autore Amira Scherz, Junior Investment Writer
  • Tempo di lettura 5 minuto

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Asian stocks were mixed on Wednesday ahead of US inflation data: Japan’s Nikkei 225 gained about 2%, Hong Kong’s Hang Seng was flat, and Australia’s S&P/ASX 200 rose 1.1%, although annual inflation in Australia accelerated to 4% in August from 3.5% in July. Japanese industrial output fell 2.2% year-on-year in August, reversing July’s 4% rise, as an earthquake and supply disruptions weighed on factories; retail sales growth slowed to 2.7% from 3.7%. China’s manufacturing PMI returned to expansion at 50.1 in September from 49.8 in August, while the non-manufacturing PMI rose to 50.2 from 49.0. Meanwhile, gold stabilized around USD 4200 per ounce, while bitcoin slipped 0.1% to around USD 83,300. Brent crude oil futures rose 0.2% to USD 96.38 per barrel, and West Texas Intermediate (WTI) futures gained 0.3% to USD 89.60 per barrel.

US stocks mixed as rate bets ease

US stocks ended mixed on Tuesday: the Dow Jones fell 0.3% to 51,349.92 points and the S&P 500 slipped 0.2% to 7670.84, while the Nasdaq-100 gained 0.2% to 30,339.33. Tuesday’s decline in oil prices did little to ease inflation concerns, and yields on 30-year US Treasuries reached their highest level since 2002. US consumer confidence fell to 81.9 in September from 88.6 in August, according to the Conference Board survey. Meanwhile job openings declined to 7.08 million in August from 7.34 million in July, data released on Tuesday showed. The weaker figures and comments from New York Federal Reserve President John Williams shifted traders’ expectations on Wednesday, leaving them to view a rate pause in October as slightly more likely than an increase.

Canadian growth flat in July

Canada’s economy was unchanged in July after three months of growth, data released on Tuesday showed. Manufacturing weakened, offset by gains in utilities and construction. A US ban on selected Canadian goods also took effect on Tuesday, adding to trade tensions.

Swiss economic outlook strengthens further

Switzerland’s KOF Economic indicator rose to 109.1 points in September from a revised 107.5 in August, according to figures released on Tuesday, beating market expectations. Its sixth consecutive monthly increase took the indicator to its highest level since 2021. Manufacturing, services and construction contributed to the improvement, while indicators for foreign demand, financial and insurance services, and employment weakened.

ECB Lagarde gives mixed euro-area outlook

European Central Bank President Christine Lagarde presented on Tuesday a mixed assessment of euro-area growth and inflation to the European Parliament. September inflation figures from Germany, France and Italy are due on Wednesday and may provide further insight into the euro-area inflation outlook.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Micron.

Economic data in focus: UK gross domestic product (08:00), German retail sales (08:00), French Consumer Price Index (08:45), Swiss foreign currency reserves (09:00), German unemployment rate (09:55), Italian Consumer Price Index (11:00), German Consumer Price Index (14:00), US ADP National Employment Report (14:15), US GDP (14:30), US personal consumption expenditures (14:30), US trade balance (14:30), Swiss National Bank Quarterly Bulletin (15:00).

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Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.