US equities fell broadly for a second day in a row Wednesday, with the S&P 500 Index and the Nasdaq Composite sinking to the lowest closes in over a week, as rising oil prices and unexpectedly strong data on services sector activity stirred inflation and interest rate concerns.  European shares also ended lower, extending losses for a sixth consecutive session, with the Euro Stoxx 50 Index down 0.7% primarily due to declines in household goods and banks following weak data in the region.  

Summary for 07.09.2023 

  • Most Asian shares fell this morning as trade data pointed to continued weakness in the Chinese economy, while regional technology shares were hit by the prospect of more US curbs on China after officials balked at a supposed Chinese chip breakthrough.  Markets in Australia, South Korea, Hong Kong and mainland China declined, while Japanese shares struggled for clear direction following an eight-day advance. 
  • European shares are set to extend their losing streak while US futures were little changed in early morning as traders assess the Fed’s latest rate outlook. 
  • Oil prices eased on Thursday as worries over demand due to a seasonal slowdown during winter and an uncertain economic outlook for China outweighed expectations of tighter supplies from extended production cuts in Saudi Arabia and Russia. 
  • China’s trade surplus slumped to $68.36 billion in August from $78.65 billion in the same period a year earlier, below market forecasts of $73.9 billion.  It was the smallest trade surplus since May, as exports dropped more than imports amid persistently weak demand from home and abroad.  Exports shrank 8.8% yoy, the fourth straight month of decline, better than market consensus of a 9.2% fall, while imports fell by 7.3%, the sixth consecutive month of decrease, compared to the consensus of a 9% drop. 
  • The ISM Services PMI unexpectedly jumped to 54.5 in August, pointing to the strongest growth in the services sector in six months, compared to 52.7 in July and forecasts of 52.5.  Faster increases were seen in business activity, new orders, employment and inventories.   
  • Retail sales in the Euro Area decreased by 0.2% month-over-month in July, following an upwardly revised 0.2% rise in June and compared with market expectations of a 0.1% drop.  On a yearly basis, retail sales were down by 1.0%, marking the tenth consecutive month of contraction. 
  • Apple’s shares fell 3.6% yesterday after the Wall Street Journal reported China’s government had banned government employees from using iPhones at work.  Apple relies on China for about 19% of its revenue. 
  • Southwest Airlines shares fell 2.5% in Wednesday’s session after the company said in a filing that August bookings were on the “lower-end” of expectations and that it expects revenue per average seat mile to be on the lower end of its previous outlook.  The airline also said fuel costs had risen.  United Airlines shares fell 0.3% after reporting higher fuel costs.