Sep 09
30
Morning Call by Greg Secker
The pan-European FTSEurofirst 300 index rose 0.1 percent to close at 1,002.25 points. European shares closed marginally higher on Tuesday with banks showing strength. The Dow Jones industrial average dropped 47.16 points, or 0.48 percent, to 9,742.20. The Standard & Poor’s 500 Index .SPX shed 2.37 points, or 0.22 percent, to 1,060.61. The Nasdaq Composite Index dipped 6.70 points, or 0.31 percent, to 2,124.04. U.S. stocks fell on Tuesday as a surprise drop in a gauge of consumer confidence overshadowed other signs of stabilization. The benchmark Nikkei inched up 6.58 points to 10,106.78, after rising 0.9 percent the previous day. The broader TOPX was flat at 904.40.
Japan is sliding into the deepest deflation since the Second World War. Core inflation fell a record 2.4 per cent in September, which is a steeper drop than at any time during the country’s Lost Decade. This month’s State Street Investor Confidence Index has shown Global Investor Confidence fell by 4.7 points to 118.1 from a revised August level of 122.8. The confidence of North American institutional investors declined slightly by 4.6 points. Elsewhere, the tone was more upbeat. European Investor Confidence rose, while Asian Investor Confidence increased. Yesterday, data showed house prices in America rose for a third month in July, but consumer confidence fell in September.
Due for release today, there is the EUR German Unemployment Change, EUR German Unemployment Rate, EUR Euro-Zone Consumer Price Index Estimate, CHF KOF Swiss Leading Indicator, USD ADP Employment Change, CAD Gross Domestic Product, USD Personal Consumption, USD Personal Core Consumption, USD Gross Domestic Product Price Index, JPY Tankan Large Manufacturers Index, JPY Tankan Non-Manufacturing Outlook, JPY Tankan Large All Industry Capex.
By Greg Secker
