The Closing Bell: U.S. Futures Lower: Global Stocks Rise On Manufacturing Data

Ted

FYI: • European stocks close higher after PMI data

• Asian markets mixed

• U.S. markets closed for Labor Day

Global stocks rose after manufacturing data in both China and Europe showed some improvement, but economic growth concerns remained.

The Stoxx Europe 600 closed 0.3% higher on Monday, marking a third consecutive session of gains.

The U.K.’s FTSE 100 climbed 1%, topping regional gains as worries the government would turn to a general election to break the nation’s Brexit deadlock weighed on the British pound and provided a boost to the blue-chip index’s companies that make a significant portion of their profit overseas.

The broader rises in Europe came 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 it was modestly better than the 46.5 reading from July.

Still, investors and analysts remained concerned about the region’s growth prospects, which have been buffeted by the threat of a no-deal Brexit and the U.S.-China trade fight.

The U.K. manufacturing PMI data—which was the lowest in seven years—showed the nation’s stalled departure from the EU was weighing on factories, Mr. Dixon said. “The Brexit effect is clearly there.”

London-listed pharmaceutical giant AstraZeneca made some of the largest gains in Europe. Its shares rose 2.9% after reaching a record level following positive results from trials of its Farxiga drug.

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%.

U.S. markets were closed for the Labor Day holiday, leading to lower-than-usual trading volumes in Asia, said Stephen Innes, Asia-Pacific market strategist for AxiTrader, in a note.

In currencies, the British pound slipped 0.7% against the dollar as fears of a no-deal Brexit weighed on sentiment ahead of a crucial week for the U.K.’s departure from the European Union, said Commerzbank’s Mr. Dixon.

The slide in the pound likely drove the strong gains for the FTSE 100, Mr. Dixon said. A large chunk FTSE 100 companies’ profit is generated overseas, and those earnings become more valuable with a weaker pound.

The Argentine peso gained 2.6% against the dollar after the country moved to impose capital controls amid investors’ concerns that populist Alberto Fernández could succeed Mauricio Macri as president.

The euro hit a two-year low against the dollar after slipping last week as weak economic data raised expectations that the European Central Bank would move to ease monetary policy. The currency was last down 0.2% against the dollar, bringing it to $1.0967.

In commodities markets, global benchmark Brent crude oil fell 1.4% to $58.42 a barrel, while gold prices ticked up 0.5% to $1,528.14 a troy

Regards,
Ted

MarketWatch:
https://www.marketwatch.com/story/us-stock-futures-weaken-as-tariffs-go-into-effect-2019-09-02/print

WSJ:
https://www.wsj.com/articles/global-stocks-gain-ahead-of-european-data-11567410813

Bloomberg:
https://www.bloomberg.com/news/articles/2019-09-01/yen-gains-yuan-slips-as-new-tariffs-kick-in-markets-wrap?srnd=premium

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-trump-tariffs-escalate-china-trade-war-can-stock-market-rally/

CNBC:
U. S. Markets Closed

Reuters:
https://uk.reuters.com/article/uk-global-markets/global-stocks-slip-on-tariffs-argentina-hit-by-capital-controls-idUKKCN1VN007

U.K:
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-soars-as-election-talk-knocks-sterling-idUKKCN1VN0HU

Europe:
https://www.reuters.com/article/europe-stocks/update-2-defensive-buying-drives-european-stocks-higher-ftse-outperforms-idUSL3N25T1X2

Asia:
https://www.cnbc.com/2019/09/02/asia-markets-sept-2-us-china-tariffs-china-pmi-currencies-and-oil.html

Bonds:
U. S. Bond Market Closed

Currencies:
https://www.cnbc.com/2019/09/02/forex-markets-us-china-tariffs-in-focus.html

Oil:
https://www.cnbc.com/2019/09/02/oil-markets-us-china-trade-tariffs-in-focus.html

Gold:
https://www.cnbc.com/2019/09/02/gold-markets-us-china-trade-tariffs-geopolitics-in-focus.html

WSJ: Markets At A Glance:
https://markets.wsj.com/us

Major ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitor

SPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-tracker

SPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectors

Current Futures:
https://finviz.com/futures.ashx