Buyers may be scarce in early trade on the New York stock markets, amid depressing economic indicators from China and the euro zone, two major trading partners of the United States.
‘It will not take long before the ‘QE3′ effect fades and we see a new market phase of risk aversion, “, were the comments coming from London, which highlights a decline for the eleventh straight month in manufacturing activity in China, according to PMI.
The situation can also be felt in the euro area where the flash Markit PMI activity dropped from 46.3 in August to 45.9 in September, signalling a monthly contraction in the private sector the highest since June 2009.
Jobless claims in the United States gave us no reason to rejoice: they dropped slightly by 3,000 last week to 382,000 but the four-week average was up 2,000 to 377,750. Announced today are figures from the Philly Fed activity index, calculated by the Philadelphia Fed: according to economists, it should go up to -3 in September, compared with -7.1 in the previous month.
European markets are also down at the time of writing with the Stoxx Europe 600 index falling after the publication of statistics which show a contraction in the pace of the Eurozone not seen for more than three years.
On the corporate side, Bank of America (BAC) dropped 1.3% in pre-opening while the Wall Street Journal reported that the U.S. banking giant would accelerate cost reductions by eliminating 16,000 jobs by the end of the year.
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