CMC Markets | Sep 15, 2015 09:11
There was no additional stimulus announced from the Bank of Japan to encourage any return to risk taking so markets have been left eyeing weakness in China and the upcoming Federal Reserve rate decision. Japan’s Nikkei eked out small gains after nothing unexpected was announced from the BOJ in its monetary policy meeting. Volatility appears to be picking up again China’s Shanghai Composite, which is now down as much as 6% so far this week.
German investor confidence saw a surprise rise in August but expectations for the future dropped more than expected in a sign the stock market rout has taken its toll on German investor’s belief in future returns.
Inflation in the UK slipped back to zero in August as expected, driven down by the fall in the price of crude oil. Core price which exclude food and energy also fell to 1.0% year-over year. Retail prices rose slightly in part because retailers discounted less than last summer.
The UK’s FTSE 100 dropped as much as 1% in morning trade. The main benchmark index is now holding just above 6,000 and two-week lows.
B&Q-owner Kingfisher fell to the bottom of the FTSE after poorly-received first half results. Adjusted sales, which excludes the sale of B&Q’s business in China were lower, hurt by a poor performance in France and a strong pound. There appears to be a consumer shift from DIY to hiring tradesmen and new CEO Veronique Laury is changing the company’s emphasis accordingly by closing B&Q stores and investing in ‘Screwfix’ which sells to building professionals.
Weakness in Chinese markets fed through to another difficult day for mining companies with Glencore (LONDON:GLEN) again down as much as 6%, undoing all of its debt-restructuring bounce to reach no record lows. The completion of its purchase of assets from rivals Holcim (SIX:LHN) and Lafarge (PARIS:LAFP) helped CRH (LONDON:CRH) be one of a handful of shares seeing gains.
US markets look set for a lower open on Tuesday. The Dow Jones is now sitting in the middle of its 16,000 – 16,700 range as sideways markets look set to dominate before Thursday’s Fed meeting.
DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.
No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
Written By: CMC Markets
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.