Equity futures and government bonds lost some ground after Chinese data suggested a slowdown in services activity, fueling further concerns about global growth.
The data reinforced signs that China’s drip injection of stimulus is not working, said Arun Sai, multi-asset strategist at Pictet Asset Management. As investors hope inflation can be contained without a sharp global slowdown, “China could be the catalyst,” he said.
US stock futures declined modestly. Contracts related to the S&P 500, the Dow and the tech-focused Nasdaq-100 all posted small losses. US markets were closed on Monday for the Labor Day holiday.
Treasury bonds fell. The benchmark 10-year government bond yield rose to 4.23% after closing at around 4.17% on Friday.
Chinese stocks fell. The Shanghai Composite Index fell nearly 1% and Hong Kong’s Hang Seng Index lost over 2%. Otherwise, the Japanese Nikkei 225 rose slightly and the European Stoxx Europe 600 fluctuated.
The Australian dollar rose 1.6% against the greenback. The Reserve Bank of Australia kept interest rates unchanged at 4.1% for a third month, below many other major economies.
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