Markets await Powell’s speech at central bankers’ annual gathering - 8.23

SP500 slips while Dow gains after weak manufacturing data

US stock indexes ended mixed on Thursday after weak manufacturing data as longer term bond yields dipped below short term debt yields, spurring recession fears. The S&P 500 slipped 0.05% to 2922.95. The Dow Jones industrial average rose 0.2% to 26252.24 buoyed by 4.2% gain in Boeing. Nasdaq composite index slid 0.4% to 7991.38. The dollar strengthening halted as Markit’s Manufacturing PMI index declined to 49.9 in August from 50.4 in July, signaling contraction in factory activity: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slipped 0.1% to 98.19 but is higher currently. Investors await Fed chair Powell’s speech at central bankers symposium in Jackson Hole, after Kansas City Fed President Esther George and Philadelphia Fed President Patrick Harker said they would like to hold interest rates steady. Stock index futures point to higher market openings today.

FTSE 100 paces European indexes retreat

European stocks pulled back on Thursday after Treasurys yield curve inverted once again, the third inversion in less than two weeks. EUR/USD continued declining while GBP/USD turned higher yesterday with both pairs moving lower currently. The Stoxx Europe 600 index ended 0.5% lower. Germany’s DAX 30 slipped 0.5% to 11747.04. France’s CAC 40 slid 0.9% and UK’s FTSE 100 fell 1.1% to 7128.18.

Shanghai Composite leads Asian indexes gains

Asian stock indices are mostly higher today as China’s onshore yuan hit its weakest level since 2008. Nikkei extended gains 0.4% to 20710.91 as yen’s slide against the dollar resumed. Chinese shares are rising: the Shanghai Composite Index is up 0.5% and Hong Kong’s Hang Seng Index is 0.4% higher. Australia’s All Ordinaries Index added another 0.3% to previous session gains as Australian dollar slowed its slide against the greenback.

Brent down

Brent futures prices are edging lower today. Prices retreated yesterday: October Brent crude lost 0.4% to $60.05 a barrel on Thursday.