Get 40% Off
🤑 This hedge fund gained 26.16% in the last month. Get their top stocks with our free stock ideas tool.See stock ideas

Marketmind: Strikes, system failures and a slowdown

Published 2023-08-29, 12:34 a/m
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, August 2, 2023. REUTERS/Staff/File Photo

A look at the day ahead in European and global markets from Tom Westbrook:

Workers at two Chevron (NYSE:CVX) liquefied natural gas facilities in Australia plan stoppages next week, putting European gas traders on edge and sending prices higher amid worries about potential supply interruptions.

Workers at Toyota plants in Japan were idle, meanwhile, as a systems malfunction crippling component orders brought output to a standstill for the world's top automaker.

That comes on the heels of tech woes at British air control on Monday that disrupted flights. Coincidence?

Probably, but perhaps it has all fed into expectations that economic data is going to come in soft for the rest of the week, which had investors spending the Asia session buying bonds.

Two-year Treasury yields dropped more than five basis points - a decent move for Asia hours - to below 5% and slightly narrowing the yield curve's inversion.

French and German confidence data is due later in the day, followed by U.S. job openings, where a slight decrease might point to a slowdown for broader labour figures that are due out on Friday.

FTSE futures suggest a positive return from a day's holiday in London, while U.S. and European futures were flat.

Japan's government said it may be at an inflection point in its 25-year battle with deflation, though that scarcely lifted the yen from Monday's 10-month low.

Japan's Nikkei touched a two-week top, while Chinese stocks were also on the shopping list in Asia, with foreigners turning buyers after Beijing signalled some interest in steadying markets by halving stamp duty on share trading.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Hong Kong's Hang Seng was up 2% by mid-session and mainland blue chips were up 1.5%. Both remain lower for the year so far, as does the yuan, which has hardly caught a boost as doubts about China's economic outlook remain heavy.

Trade tensions also lurk, with U.S. Commerce Secretary Gina Raimondo meeting her Chinese counterpart to discuss restrictions on chipmakers and chipmaking ingredients.

As the holiday season winds down, there are some signs it's been a good one: Tourism Holdings, the world's biggest campervan rental company, posted a record underlying profit and its shares had their best trading sessions since the pandemic, jumping 15%.

Key developments that could influence markets on Tuesday:

Data: German and French consumer sentiment, U.S. home prices, job openings

Earnings: Hewlett Packard, Best Buy

Latest comments

Risk Disclosure: 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.