Overnight Summary — World markets off to a rocky start heading into Thursday’s open
The global equity markets are giving another mixed read. S&P Futures are down about seven points to trade around the 4465 area. The market consolidated to its narrowest range of the week with the high established at 4478.50 and the low at 4463.50.
In Asia, China dropped 1.3% while Japan was set back by 0.6%. The Shanghai was rattled by reports that Evergrande Group may default on debt. This coupled with continued regulatory uncertainty in the Macau gaming sector sent both the China and Hong Kong down over 1%. In Japan, the Nikkei pulled back for the second straight day. Weaker than expected trade data for August dampened spirits, particularly after exports only grew at a 26.2% clip compared to the consensus of 34.0%. This was also down from July’s print of 37.0%.
In Europe, the major bourses are trading higher. Travel stocks are reversing course from their trajectory earlier this week. Ryanair is up over 6% after raising its five-year traffic outlook. This has enabled names such as IAG and EasyJet to bounce 3-4%. Automakers are showing modest losses across the board after European Passenger Car Registration data saw its first decline in four months.