The market came under heavy selling pressure after remarks U.S. National Economic Council Director Larry Kudlow on CNBC. White House economic adviser Larry Kudlow denied a media report Friday that Donald Trump had asked senior officials of his administration to draft a possible deal with China on trade.
The U.S. mid-term elections are also in focus, with Trump's Republican Party this week defending its majority in the U.S. House of Representatives and the Senate. If the Republicans lose control of either the House or the Senate, markets could see "more volatility on risk assets and a rising risk premium," strategists at Societe Generale wrote in a report. "The political and economic agenda has driven the financial markets for the past two years -- so political gridlock and uncertainty will not come without pain."
ECONOMIC NEWS: China private sector growth falls to October China's private sector grew at a weaker pace in October with both services and manufacturing noting weaker performances, IHS Markit survey results showed. The Caixin composite output index fell to a 28-month low of 50.5 in October from 52.1 in September. Service sector activity rose only marginally, with the Caixin services Purchasing Managers' Index fell to a 13-month low of 50.8 from 53.1 in September.
China Caixin Private Sector Growth Weakest In More Than 2 Years China's private sector expanded at the weakest pace in more than two years in October with both services and manufacturing noting weaker performances, survey results from IHS Markit showed Monday. The Caixin composite output index fell to a 28-month low of 50.5 in October from 52.1 in September. Service sector activity rose only marginally, with the Caixin services Purchasing Managers' Index fell to a 13-month low of 50.8 from 53.1 in September. Meanwhile, manufacturing production stagnated, following increases in each of the preceding 27 months.
CURRENCY NEWS: China's yuan depreciated against the U.S. dollar on Monday, despite stronger mid-point fixing by central bank and as China's president said the country will lower import tariffs and continue to broaden market access, at the start of a week-long trade expo meant to demonstrate China's importing potential. Prior to market open, the People's Bank of China set the midpoint rate at 6.8976 per dollar, firmer than the previous fix of 6.9371. Offshore one-year non-deliverable forwards contracts (NDFs), seen as the best available indicator for market expectations of the yuan's value, traded at 6.9839, about 1 percent weaker than the spot rate.
Powered by Capital Market - Live News