- 8:15 AM EST: US ADP non-farm employment change (May)
- 8:30 AM EST: US GDP (Q1)
- 8:30 AM EST: US goods trade balance (April)
- 2:00 PM EST: Beige Book
- 4:30 PM EST: US API weekly crude oil stock
- 7:01 PM EST: UK GfK consumer confidence (May)
- 7:50 PM EST: Japan’s industrial production (April)
- 9:00 PM EST: China’s manufacturing PMI (May)
- 9:00 PM EST: China’s non-manufacturing PMI (May)
China’s Shanghai Composite Index started this week on a weaker note and declined in the first two trading days of the week. Carrying forward the weakness, the Shanghai Composite Index opened lower on Wednesday and declined to the lowest daily close since September 2016.
The Shanghai Composite Index declined on Tuesday amid credit risks and political turmoil in Italy. Maintaining the weakness, the Shanghai Composite Index declined the most in nine weeks on Wednesday. Political tensions in Italy escalated and took the shine out of global equity markets. Banking stocks continued to weigh on the market due to credit risk concerns amid bond defaults. US-China trade war concerns resurfaced in the market after the US announced import tariffs of 25% on $50 billion worth of goods from Chinese factories. The final list of imports is scheduled to be released on June 15.
The market is looking forward to the release of China’s manufacturing PMI data. The data are scheduled to be released at 9:00 PM EST today. On May 30, the Shanghai Composite Index closed at 3,041.64—a drop of 2.5%. The SPDR S&P China (GXC) declined 1.6% on Tuesday.
After declining to three-week low price levels on Tuesday, Hong Kong’s Hang Seng Index opened lower on May 30 and declined as the day progressed. Increased concerns about the political situation in Italy and escalating US-China trade war concerns weighed on the Hang Seng Index on Wednesday. On May 30, the Hang Seng Index declined 1.4% and closed the day at 30,056.79. The iShares MSCI Hong Kong (EWH) gained 1.1% on Tuesday.
After losing strength on Tuesday, Japan’s Nikkei Index opened lower on May 30 and declined to six-week low price levels. The weak global market sentiment amid political turmoil in Italy increased the demand for the yen and weighed on the Nikkei Index. Insurance and banking stocks declined on Wednesday and led the market fall.
On May 30, the Nikkei Index declined 1.5% and closed the day at 22,022.50. The iShares MSCI Japan (EWJ) declined 0.67% on Tuesday.
Next, we’ll discuss how European markets performed in the morning session on May 30.
On May 29, SPY declined 1.2% and closed the day at $269.02. The NASDAQ Composite Index declined 0.5% and closed the day at 7,396.59.
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