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Market Update

EncoreFX’s daily market updates are written by our experienced and professional dealing team.

Global Markets Begin 2019 with Sharp Decline | PMI Data Day

Published January 2, 2019
  • Equity markets are opening 2019 with stocks under downward pressure across the globe. The story in Asia has been the MSCI Asia Pacific Index dropping 0.9% as Chinese data disappointed investor sentiment. In North American equity markets, the first trading session of the year for the S&P 500 is pointing towards a steep drop at the open.
  • The US government shutdown enters its 12th day with President Trump inviting congressional leaders from both parties to a White House briefing on border security. Proposed negotiations aim to bring an end to the shutdown.
  • Sub-standard PMI data across the globe has initiated the sell-off in most asset classes this morning as Caixin Media and IHS Markit PMI fell to 49.7. In Europe, there were additional indications of economic weakness in PMI data, although it is widely expected for the ECB to continue monetary tightening this year. UK manufacturing data came in better than forecast, with growth rising to a six-month high. The increase has been characterized as a result of corporate provisions for a disorderly Brexit.
  • Oil market volatility remains high as West Texas Intermediate trades at $44.84 this morning. Global growth concerns have fueled uncertainty over crude output, highlighted by Russian production reaching post-Soviet era highs.