Global Calm
- Asian stocks rise for the first time this week
- China and Hong Kong markets shut for 2 days
- Japanese shares rise from a 1-week low aided by weakness in the yen
- US and European stocks end higher after a volatile session
- Oil prices retreat after 8% surge on Tuesday
- Data shows US private employers maintained a steady pace of hiring in August
Asian stocks rose for the first time this week as a two-day holiday in China gave investors respite from the market that’s been at the centre of recent global volatility.
Japanese shares advanced from a one-week low, aided by weakness in the yen. Overnight US and European stocks rallied. Oil retreated after President Barack Obama secured congressional support for a deal with Iran that may add to a global glut.
A major source of market disruption is sidelined as markets in China are now closed for the week. Asia-Pacific investors are anticipating relief today.
— Michael McCarthy, Chief Market Strategist, CMC Markets
Surge Amid Turbulence
Wall Street stocks jumped almost 2% overnight after a volatile session as investors weighed the impact of a stumbling Chinese economy and global market turmoil on the Federal Reserve’s impending decision about when to raise interest rates.
In some respite, US private employers maintained a steady pace of hiring in August despite recent global financial market turmoil, suggesting that labour market momentum likely remains strong enough for the Federal Reserve to consider an interest rate hike this year.
The ADP National Employment Report on Wednesday showed private payrolls increased 190,000 last month. While that was below economists’ expectations for a gain of 201,000 jobs, it was a step-up from the 177,000 positions created in July and in line with the trend for the first seven months of this year.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)