Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Asian trading takes its own lead

Asian trading takes its own lead

With no lead from the US markets, which were closed yesterday, Asian markets are primed for small moves at the open today, awaiting key policy decisions out of Australia and a wage report from Japan. This follows Asian markets shrugging off weaker-than-expected manufacturing activity from China yesterday.

Tougher business climate

Both the private and state-owned surveys showed manufacturing activity slowing in August, signalling a tougher business climate internally, and dwindling global demand. This helped to spur talks of stimulus by the government, which lifted the Shanghai composite. The Shanghai composite gained 0.8% while the Nikkei added 0.3%. In the meantime, the Hang Seng was mostly flat after protestors took to the streets in the central region after Beijing ruled out a democratic election in 2017. The RBA is widely expected to keep interest rates unchanged later today, as the central bank tries to find equilibrium between supporting an economy that is facing decelerating mining investment and rising inflation, worsened by an overheated property market. Building approvals in Australia are expected to rebound in July, while the current account in Q2 is expected to show a deficit which has more than doubled from Q1. In Europe, disappointing manufacturing data out of the EU and an escalating crisis in Ukraine led to speculation that the ECB may offer a more concrete display of support for the economy, even if it fails to act later this week. This has hardened the stance for looser monetary policy in the upcoming months.

European slowdown ‘synchronised’

The slowdown of manufacturing activity from EU members was alarmingly synchronised. The manufacturing PMI figures slipped to an 11-month low in Germany, a 15-month low in France and a 14-month low in Italy, contributing to an overall EZ manufacturing PMI of 50.7, which hit an ominous 13-month low. Combined with the fact that EZ inflation slumped to a five-year low last Friday, and with German retail sales slipping back into the red, the European central bank will be pressured to act when it meets on Thursday. The US markets return later this evening with the release of ISM manufacturing PMI and construction spending. Investors will also want to note that the preview to the non-farm payrolls - otherwise known as the ADP jobs report - will be due out on Thursday instead of Wednesday, promising a volatile session with the ECB trade conference due 15 mins later.

IMPORTANT NOTE AND DISCLAIMERS Market Opinions Any opinion(s), news, research, analyses, prices, or other information contained on this website / document is provided as general market commentary and are from publicly available resources or otherwise obtained, and does not constitute investment advice nor does it seek to market, endorse, recommend or promote any investment or financial product. CMC Markets Singapore Pte Ltd. (Reg No./UEN: 200605050E) (“CMC Markets”) will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Accuracy of Information The content is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. CMC Markets has taken reasonable measures to ensure the accuracy of the information, however, does not guarantee its accuracy, and will not accept liability for any loss or damage. CMC offers no financial advisory services in any of the content or vouch for the veracity of any information. Distribution The content of this publication is not intended for distribution, or use by, any person in any country where such distribution or use would be contrary to local law or regulation. None of the services or products referred to or mentioned are available to persons residing in any country where the provision of such services or investments would be contrary to local law or regulation. It is the responsibility of the reader to ascertain the terms of and comply with any local law or regulation to which they are subject. Third Parties CMC Markets may provide you with opportunities to link to, or otherwise use, sites and services offered through or by third-party(ies). Your use of these third-party services is subject to such terms as posted by these third-party(ies). We have no control over any third-party site or service and we are not responsible for any changes to any third-party service or for the contents thereof, including, without limitation, any links that may be contained in or accessible through such third-party service. These links are provided solely as a convenience to you. You will need to make your own independent judgment regarding your interaction with these third-party sites or services. Our inclusion of advertisements for, or links to, a third-party site or service does not constitute an endorsement of any of the representations, products or services listed therein. Important Note Each reader/recipient agrees and acknowledges that: (a) no express undertaking is given and none can be implied as to the accuracy or completeness of this document; (b) this document does not constitute in any way a solicitation nor incentive to sell or buy any Shares, Stock Options and Contracts For Difference (CFDs) and similar and assimilated products; (c) each reader/recipient of this document acknowledges and agrees to the fact that, by its very nature, any investment in Shares, Stock Options, CFDs and similar and assimilated products is characterised by a certain degree of uncertainty; that consequently, any investment of this nature involves risks for which the reader/recipient is solely responsible and liable. It is to be noted that past performance is not necessarily indicative of future results. In this respect, past performance of a financial product do not guarantee any and are not an indication as to future performance; (d) the use and interpretation of this document require financial skill and judgement. Any utilisation whatsoever by the reader/recipient, relating to this document, as well as any decision which the reader/recipient may take regarding a possible purchase or sale of Shares, Stock Options, CFDs and similar and assimilated products, are the sole responsibility and liability of the reader/recipient who acknowledges and agrees to this as a condition precedent to and prior to any access to this document; (e) as a result of the above, all legal liability directly or indirectly arising whatsoever.