Asian markets lower this morning, notably Australia’s bourse dropped towards 3 weeks lows after the central bank kept its benchmark interest rate unchanged. Also worth noting that Goldman cut their earnings growth estimates for Chinese listed companies. In corporate news, Fortescue Metals, Australia’s third largest iron ore producer fell around 2.5% after cutting their full year capital spending forecast by 26%.

The EU’s credit rating outlook was cut to negative by Moody’s late last night, reflecting the negative outlook on the Aaa ratings of the member states with large contributions to the EU’s budget. EU President Van Rompuy is in Berlin with talks with Germany’s Merkel. The Spanish regional government minister says the government of Catalonia needs immediate funding from the central government and does not have funds to meet September’s payment obligations. European equity futures are pretty flat, whilst there is relative strength in the EURUSD pair trading above the 1.26 level.

The US markets reopen today following yesterday’s Labor Day, with ISM manufacturing data due later today.

 

Philip Ball | Sales and Trading