Queensway Blog

News / Analysis

Finance Update – A Slow Start


Asia – China Surplus at 18-month high

Equity losses spread across the Pacific overnight as Chinese indices show red this morning, the China a50 to the tune of -1.24%. The Hang Seng is down 0.10% and the Nikkei -0.5%.

This morning, China released a better-than-expected $58.9 bn trade surplus for August on a 1.5 year record increase in exports and a slip in imports, while Japan’s preliminary leading economic index is up 3 points for July to 86.9.

Australia and New Zealand indices are about a fifth per cent above zero after Retail Sales in Australia disappointed with a 3.2% MoM climb in July.

Europe – Johnson delivers Brexit ultimatum

European benchmarks showed major stress last week, the DAX losing 1.65% Friday. August Services PMIs throughout the zone and the UK disappointed, except for the EU and Germany, where they rose by between 0.4 and 2 points, respectively.

July’s retail sales for the EU contracted by 1.3% MoM in July – a quarter of the previous reading; and factory orders in Germany grew by a less-than-expected 2.8% MoM – a tenth of the June figure.

UK PM Boris Johnson has given the EU a deadline – October 15 – to finalise the Brexit agreement, according to Reuters. The government is reportedly preparing post hard-Brexit legislation that cancels any agreements with the EU on state aid and Northern Ireland customs.

Americas – Labour Day weekend delays plunge?

In an ironic twist, US indices are breathing a sigh of relief over Labour Day, stocks having experienced their worst plunge since June. The Nasdaq lost another 1.27 on Friday after losing 1000 points during the session as traders abandoned tech stocks.

On Sunday, Treasury Sec. Mnuchin said the House was close to reaching a federal aid bill to cover the period until December. On Friday, the US Bureau of Labour Statistics delivered a less-than-stellar NFP showing 1.37 m new jobs in August. Other employment data was in the green, hourly earnings maintaining a 4.7% increase YoY and the participation rate up 3 ticks to 61.7% in August.

The previous day saw a deterioration in the US trade deficit to $63.6 bn in Jul7y, but a 3-figure 881,000 initial jobless claims, placing the continuing number at a better-than-expected 13.25mn claimants. The services PMI was up to 55 according to Markit but down to 56.9, according to the ISM.

Canadian unemployment disappointingly lost only 7/10 of a per cent falling to 10.2%hourly wages and participation rising marginally.

Commodities – Saudi price cuts reverberate

Oil this morning is down 1.81% to $39 after Friday’s Baker Hughes report shows one additional oil rig on line, but more so on Saudi Arabia cut prices on demand fears.

Corporate – Samsung gets Verizon 5G

CSL is up 0.92% this morning after announcing it would manufacture 2 difference Covid19 vaccinations, but Moderna is down 3.45% after announcing it was slowing down its testing process to include a wider scope of the population.

Samsung is up 1.62% after announcing this morning that it had won a $6.46 bn 5G contract with Verizon in the US, according to Reuters.

And ABM Amro today pay dividends.


08:00 AM GMT UK Halifax House Prices. BRC Like-4-like retail sales at 11 PM
08:30 AM GMT EU Sentix Investor Confidence
11:30 PM GMT Japan Household spending. GDP & Trade Balance at 11:50
01:30 AM GMT (+1) Australia Ntl Bank Business Confidence


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