Home/Central Bank Watch/CNH/EUR/Forex News Round Up/USD

Asian Shares Fall on Growth Concerns Awaiting China’s PMI

Share Print 0

Asian shares followed Wall Street lower on Monday after the Federal Reserve’s decision to keep interest rates at record lows raised fresh concerns about growth globally, particularly in China.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1 percent, with Australia down 2.3 percent and South Korea off 1.4 percent. Japan was closed for a long holiday.

U.S. shares dropped more than 1.3 percent on Friday, after Fed Chair Janet Yellen said on Thursday that the global economic outlook appeared less certain.

“The monetary-policy-watcher world has now turned decidedly bearish after last Friday’s Fed meeting,” Evan Lucas, market strategist at trading services provider IG in Melbourne, wrote in a note.

“If emerging market risk, coupled with low-growth European environment is affecting Fed decision making, sentiment uncertainty will amplify,” he said.

Investors will be focusing on flash business readings from China and the eurozone on Wednesday.

A Reuters poll showed economists expect the flash August China factory PMI headline reading to edge up to 47.5 from 47.1 in August, but it likely remained near 6/1-2-year lows and pointed to a seventh straight contraction in activity on a monthly basis.

Via GLOBAL MARKETS-Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

Back to Top