In US economic data, the Empire State manufacturing index fell from +11.1 points to -31.3 points in August (+5 points). The NAHB Housing Market index fell from 55 to 49 in August (survey: 55).
In China economic data, retail sales rose 2.7 per cent in the year to July (survey: +5 per cent). Industrial production rose by 3.8 per cent (survey: +4.6 per cent).
European sharemarkets closed higher on Monday. Weak Chinese economic data saw investors drift to defensive stocks. The food & beverages sector rose 1.1% and healthcare and utilities rose by 0.8%. But miners fell 1.6% and the oil sector lost 1.3%. Also data showed that German wholesale prices fell by 0.4% in July, the first decline since Oct. 2020. The pan-European STOXX 600 index rose by 0.3%. The German Dax index rose by 0.2% and the UK FTSE index rose by 0.1%. But in London trade, shares of Rio Tinto fell by 2.2% while BHP shares fell by 0.8%.
US sharemarkets were firmer on Monday. Investors digested weak economic data in the US and China. Some investors believe that the soft data will temper the Federal Reserve rate hike expectations. The Dow Jones index closed higher by 151 points or 0.5%. The S&P 500 index rose by 0.4% and the Nasdaq index lifted by 81 points or 0.6%.
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US treasuries were firmer on Monday (yields lower) in response to weak US and Chinese economic data. The Chinese central bank cut key lending rates in an attempt to boost economic activity. US 10- year yields fell by 5 points to near 2.80%. And US 2-year yields fell by around 6 points to near 3.20%.
Major currencies were mixed against the US dollar in European and US trade. The Euro fell from highs near US$1.0255 to lows near US$1.0155 and was near US$1.0160 at the US close. The Aussie dollar fell from near US70.85 cents to US70.10 cents and was near US70.25 cents at the US close. The Japanese yen lifted from near 133.52 yen per US dollar to JPY132.56 but was back near JPY133.30 at the US close.
Global oil prices fell by near 3% on Monday to 6-month lows after Chinese economic data fell short of analyst forecasts. Investors fear that the global economy will continue to slow, reducing oil demand and driving prices lower. The Brent crude price fell by US$3.05 or 3.1% to US$95.10 a barrel. And the US Nymex crude price lost US$2.68 or 2.9% to US$89.41 a barrel.
Base metal prices fell by between 0.7-4.5% on Monday with lead down the least and nickel down the most.
The gold futures price fell by US$17.40 an ounce or 1.0% to US$1,798.10 an ounce. Spot gold was trading near US$1,779 an ounce at the US close. Iron ore futures fell by US$3.07 or 2.8% to US$106.79 a tonne.
Ahead: the CBA household spending intentions report is released with minutes of the last Reserve Bank Board meeting, weekly consumer confidence, a new monthly consumer price indicator and overseas arrivals & departures. In the US, industrial production and housing starts data are released.
Published by CommSec