New York City, New York – (StockNewsDesk) – 10/23/2014 — The US markets ended in the red after a shooting incident took place in the Canadian Assembly. Additionally, the crude oil price fell more than 2% and is hovering near $80. A slew of economic reports released today. China’s PMI manufacturing index showed slight improvement while the European economy showed optimism as the majority of the numbers were above analysts’ expectations. The price of Gold Futures declined 0.5% with an expectation of upbeat Initial Claims data.
Chinese Manufacturing Up, But Slightly
More on StockNewDesk:
- Get The Best Deals on Back to School Supplies at Dragon Mart
- Every Love Story Is Beautiful, But Ours Is My Favorite
- Chanson Voice – Music Academy Drum Circle Class with Devin Tomczik
- LyRanda Aalece Makes A Stunning Return To The Music Business
- Hoverboardsindia – Launching high quality hoverboard, self balancing scooter in India
Investors had a sigh-of-relief when China’s Purchasing Managers’ Index came in slightly above expectations. The PMI came in at 50.4 compared to expectations of 50.2. A couple of days ago, a reading showed that China’s economy had expanded at its slowest pace in the last five years at 7.3%. The primary reason for the China’s economic slowdown is the housing sector. Chinese policymakers have eased home-purchase controls and pumped in liquidity to kick-start growth. Better than expected exports have also given a boost to the economy in September.
Manufacturing and Services Index
European markets, DAX, CAC and Euro Stoxx, opened with indices over 1% down. However, it recovered after economic data from Europe’s largest economy, Germany, topped expectations. The German manufacturing PMI showed a reading of 51.8 compared to expectations of 49.5; however, the German Services PMI declined marginally to 54.8. Manufacturing and Services PMI in the region’s second-largest economy, France, indicates slower growth. Manufacturing and Services PMI showed a reading of 47.3 and 48.1.
Europe is already reeling under the heat of deflation. Five out of 18 euro zone countries are already suffering from such a reason. To curb the deflation, a decision on introducing stimulus measures might be taken as soon as December and will be in action the next year. The rate of interest has also been brought down to record lows to stoke deflation in the region.
Gold Futures Fall Ahead of Initial Claims
Gold prices have always been highly sensitive to the Initial Claims data released on every Thursday. The Gold Futures are trading 0.5% down at $1240 levels. Last week, the Initial Claims data came in at 264,000, the highest level since 2000. This week, analysts expected the Initial Claims figure to reach 282,000. Investors will be optimistic about the US market in a scenario where the Initial Claims data are below 300,000.
Latest on StockNewDesk:
- Inwara, the leading cryptocurrency data provider is contemplating a Securitized Token Offering (STO)
- Airbnb Management Company Airsorted to Position San Diego as US Hub
- The first all-in-one brand presence builder on the Internet – UNDEV is officially launched!
- One Of The Top Underground Entrepreneurs Comes Back To The Surface
- Sultry RnB Strains with Lyrical Spontaneity in Josh Ivell’s Songs is an Escape to Musical Freedom
I am a Seeking Alpha Writer. I studied economics in school, have worked in finance, and have been trading stock over 10 years. I am comfortable talking about macro-level material in terms of indexes as well as going into details about individual companies, depending on the scope of the topic. I am also familiar with both technical and fundamental analysis.
Follow me on Twitter https://twitter.com/jamesmith786