At 6:45 AM EST on October 13, the FTSE 100 Index was trading at 7,534.50—a fall of 0.29%. The iShares MSCI United Kingdom (EWU) rose 0.23% on October 12.
On October 13, the Shanghai Composite Index closed at 3,390.52 with a gain of 0.13%. The SPDR S&P China ETF (GXC) fell 0.52% on October 12, 2017.
As per the latest JOLTS report, about 2.1 million Americans quit their jobs voluntarily in August, which was a decrease of 70,000 from the previous reading.
The Job Openings and Labor Turnover Survey is a forward indicator of economic activity. The US Fed takes this measure into consideration when making monetary policy decisions involving interest rates.
On October 11, the S&P 500 opened the day with improved sentiment and rose to new record highs. The CBOE Volatility Index fell 2.3% to 9.85 on October 11.
After gaining for four consecutive trading weeks, the US Dollar Index started this week on a weaker note.
Following a three-week-long rally, the United Kingdom’s FTSE 100 Index started this week stable. The market opened higher on Wednesday, October 11, 2017, trading near record-high levels.
Following the week-long holidays, China’s markets started this week on a stronger note. Amid improved market sentiment, China’s Shanghai Composite Index moved higher today.
In 2017, global economic growth has been gradually improving.
The September non-farm payroll report indicated a fall in the US labor market (SPY) (VFINX) compared to August 2017.
The ADP National Employment Report for September 2017 showed some weaker improvement in private sector employment to 135,000 in September compared to the market’s expectation of 125,000.
According to the report provided by Markit Economics, Japan’s services PMI (EWJ) (DXJ) stood at 51.0 in September 2017 compared to 51.6 in August 2017.
The final UK services PMI (purchasing managers’ index) stood at 53.6 in September 2017 compared to 53.2 in August 2017.
The final Eurozone services PMI (purchasing managers’ index) rose strongly in September 2017. It stood at 55.8 in September 2017, up from 54.7 in August 2017.
According to a report by Markit Economics, the final Spain services PMI stood at 56.7 in September 2017 compared to 56.0 in August.
The iShares MSCI France ETF (EWQ), which tracks France’s performance, rose 4% in September 2017.
The iShares MSCI Germany Small-Cap ETF (EWGS), which tracks the performance of small-cap stocks in Germany, rose 3.5% in September.
The US services PMI stood at 55.3 in September compared to 56.0 in August 2017. It beat the preliminary market expectations of 55.1.
In this series, we’ll take a look at the final services PMI for the world’s major developed nations and regions, including the United States, Germany, the Eurozone, Japan, and the UK for September 2017.
Given the good economic data, loose credit conditions, benign inflation data, and investor sentiment, we think the risks of the Fed blowing an asset bubble are above average.