FYI: • European stocks hold gains after PMI data
• Asian markets mixed
• U.S. markets closed for Labor Day
Global stocks rose Monday after the U.S. and China went ahead with a new round of tariffs on each other’s goods over the weekend.
The U.S. tariffs of 15% on items such as clothing, tools and electronics came into force on Sunday, escalating the dispute ahead of further talks expected later in the month. A round of retaliatory Chinese tariffs also took effect, targeting imports of U.S. soybeans, crude oil and pharmaceuticals.
In Europe, stocks rose in morning trading as data showed a modest uptick in the region’s manufacturing sector. The manufacturing purchasing managers index for the eurozone—a gauge of activity in the region’s factories—came in at 47.0 for August, which signaled continued contraction, though was modestly better than the 46.5 reading from July.
The Stoxx Europe 600 inched 0.3% higher, led by a 0.7% rise in its financial services sector. The U.K.’s FTSE 100 rose 1% as the British pound dropped 0.4% against the dollar. The two often move in opposite directions. Germany’s DAX and the French CAC 40 were both up 0.1%.
Asian stock indexes were mixed, with Japan’s Nikkei and Hong Kong’s Hang Seng both down 0.4%, while Korea’s Kospi edged up 0.1%.
“The general market mood is likely to remain fragile with investors focused on trade war issues after new U.S. and Chinese tariffs kicked in over the weekend,” said analysts at Italian bank UniCredit in a note.
Chinese indexes performed strongly after a private survey of the nation’s manufacturers showed factory activity rebounded to a five-month high last month. The Shanghai Composite rose 1.3% and the Shenzhen A Share index rose 2.3%.
U.S. markets will remain closed Monday for the Labor Day holiday. The closures meant trading volumes in Asia were lighter than usual, said Stephen Innes, Asia-Pacific market strategist for AxiTrader, in a note.
In currencies, the euro continued to slip against the U.S. dollar after coming under pressure last week, as weak economic data raised expectations that the European Central Bank would move to ease monetary policy. The currency was last down 0.1% against the dollar, bringing it to $1.1013, close to the two-year low of $1.0991 it hit last week.
In commodities markets, nickel prices were sharply higher after Indonesia said it would put a ban on nickel-ore exports earlier than expected, raising concerns of a squeeze on supply. Three-month futures on the London Metal Exchange were last up 4.7% at $18,745 a metric ton.
Global benchmark Brent crude oil prices ticked down 0.5% to $58.95 a barrel.
Regards,
Ted
WSJ:
https://www.wsj.com/articles/global-stocks-gain-ahead-of-european-data-11567410813MarketWatch:
https://www.marketwatch.com/story/us-stock-futures-weaken-as-tariffs-go-into-effect-2019-09-02/printBloomberg
https://www.bloomberg.com/news/articles/2019-09-01/yen-gains-yuan-slips-as-new-tariffs-kick-in-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-trump-tariffs-escalate-china-trade-war-can-stock-market-rally/CNBC:
https://www.cnbc.com/2019/09/02/us-china-trade-war-beijing-takes-cautious-steps-with-new-tariffs.htmlU.K.
https://uk.reuters.com/article/us-europe-stocks/european-shares-rise-in-cautious-trade-ftse-shines-idUKKCN1VN0J2Europe:
https://www.reuters.com/article/us-europe-stocks/european-shares-rise-in-cautious-trade-ftse-shines-idUSKCN1VN0J2Asia:
https://www.cnbc.com/2019/09/02/asia-markets-sept-2-us-china-tariffs-china-pmi-currencies-and-oil.htmlBonds:
https://www.cnbc.com/2019/08/30/volatile-august-leaves-us-yields-down-investors-wary-of-recession.htmlCurrencies:
https://www.cnbc.com/2019/09/02/forex-markets-us-china-tariffs-in-focus.htmlOil;
https://www.cnbc.com/2019/09/02/oil-markets-us-china-trade-tariffs-in-focus.htmlGold:
https://www.cnbc.com/2019/09/02/gold-markets-us-china-trade-tariffs-geopolitics-in-focus.htmlCuirrent Futures:
https://finviz.com/futures.ashx 
