- 9:45 AM EST: US manufacturing PMI (purchasing managers’ index) (March)
- 10:00 AM EST: US ISM manufacturing employment (March)
- 10:00 AM EST: US ISM PMI (March)
- 6:00 PM EST: FOMC member Kashkari speaks
- 11:45 PM EST: Japan’s ten-year JGB auction
After regaining strength last week and breaking the two-week gaining streak, China’s Shanghai Composite Index started this week on a mixed note. On April 2, the Shanghai Composite Index opened the day higher and traded with strength in the morning session. However, the index lost strength as the day progressed and closed with limited losses.
The market sentiment was weak at the beginning of last week amid US-China trade war concerns. However, the market regained stability due to bargain hunting in the oversold sectors. Over the weekend, Markit released March’s China Caixin manufacturing PMI data. The data declined to 51—less than the forecast of 51.8 and below February’s reading of 51.6. China announced new tariffs on 128 US imports including nuts, fruit, and meat. The market is looking forward to the Caixin Services PMI data. The data are scheduled to be released on April 3.
The Shanghai Composite Index declined 0.16% and closed the day at 3,163.86 on April 2. The SPDR S&P China (GXC) gained 1.6% on March 29.
Hong Kong’s Hang Seng Index declined last week and recorded the second consecutive weekly decline. Concerns about the possibility of a global trade war and weakness in the IT sector weighed on the Hang Seng Index last week. Hong Kong’s markets are closed on April 2 for Easter Monday. The markets will resume trading on April 3. The Hang Seng Index declined 0.71% and closed last week at 30,093.38. The iShares MSCI Hong Kong (EWH) gained 1.1% on March 29.
Japan’s Nikkei Index rebounded last week and broke the two-week losing streak. On April 2, the Nikkei Index opened on a mixed note and closed the day almost flat. On the economic data front, according to Nomura/JMMA, Japan’s manufacturing PMI declined to 53.1 in March, which is close to the forecast of 53.2. The Nikkei Index declined 0.09% on Monday and closed the day at 21,399.50. The iShares MSCI Japan (EWJ) gained 1.3% on March 29.
European markets are closed on Monday for the Easter holiday.
Next, we’ll discuss how the US Dollar Index, Treasury yields, and Bitcoin performed in the early hours on April 2.