The major U.S. index futures are pointing to a higher opening on Tuesday, with sentiment looking up following the dismal showing last week. Earlier in the global day, a report revealed that China, which is emerging the global economic driver, is seeing its growth stutter. Export as well as import growth weakened. With this, fears that all is not well with the global economy would gain ground. At the same time, German trade data was encouraging. The risk appetite which the markets have picked up through the day could lift the domestic markets.
U.S. stocks retreated in the week ended September 4th, as Chinese growth worries and concerns that the U.S. Federal Reserve may opt to raise interest rates in September set in motion a wave of selling.
Last Monday, the major U.S. averages ended lower, as Chinese growth concerns and domestic interest rate worries were mitigated to some extent by a rally in commodity stocks. Stung by weak Chinese manufacturing data, the major averages plunged by close to 3 percent each on Tuesday.
Amid the release of soft U.S. private payrolls data, the major averages rebounded on Wednesday, supported by bargain hunting following Tuesday's sharp retreat. The averages closed mixed on Thursday, as traders stayed on the sidelines ahead of the U.S. non-farm payrolls report for August. Fairly robust monthly U.S. jobs data pressured markets on Thursday, as rate worries were aggravated, sending the averages down by over 1.5 percent each.
For the week ended September 4th, the Dow Industrials and the S&P 500 Index fell 3.25 percent and 3.40 percent, respectively, while the Nasdaq Composite Index ended down 2.99 percent.
Among the sectors, the NYSE Arca Gold Bugs Index and the Dow Jones Utilities Average fell 6.42 percent and 5.28 percent, respectively for the week. Additionally, the NYSE Arca Oil & Gas Index slid 4.10 percent and the NYSE Arca Biotechnology Index, the NYSE Arca Broker/Dealer Index, the NYSE Arca Computer Hardware Index and the KBW Bank Index declined over 3 percent each.
Currency, Commodity Markets
Crude oil futures are declining $0.33 to $45.72 a barrel after climbing $0.83 or 1.84 percent to $46.05 a barrel in the week ended September 4th.
Gold futures, which fell $12.60 or 1.11 percent to $1,121.40 an ounce in the previous week, are currently rising $1.30 to $1,122.70 an ounce. Dollar strength in the wake of firming up U.S. Fed rate hike expectations pressured the precious metal.
Among currencies, the U.S. dollar ended higher against the euro in the week ended September 4th as the fairly positive jobs data and the dovish tone of European Central Bank President Mario Draghi's post-meeting press briefing offered support to the greenback. The dollar gained 0.13 percent against the euro over the last week to $1.1170. Meanwhile, the dollar slipped about 2 percent against the yen to 119.28 yen.
The U.S. dollar is currently trading at 119.99 yen and is valued at $1.1160 versus the euro.
Asia
The major Asian markets closed mixed, as the Japanese, South Korean and Indonesian markets retreated, while most other markets advanced amid a rebound by the Chinese market despite weak domestic export and import data.
The Japanese market retreated sharply, as the yen strengthened. The Nikkei 225 Index opened higher but began declining steadily in late morning trading. After a steady retreat, the index ended down 433.39 points or 2.43 percent at 17,427.
A majority of stocks declined in the session. Construction stocks Obayashi, Shimizu and Kajima, food stocks Meiji Holdings and Kikkoman and Chugai Pharma were among the worst decliners of the session.
Meanwhile, Australia's All Ordinaries Index hovered in positive territory throughout the session before ending up 82.50 points or 1.63 percent at 5,124. The market witnessed broad based strength, with the gains spearheaded by energy, financial and utility stocks.
China's Shanghai Composite Index recovered in late trading after spending much of the session below the unchanged line. The index rallied 90.03 points or 2.92 percent before ending at 3,1791. Hong Kong's Hang Seng Index ended at 21,259, up 675.52 points or 3.28 percent.
On the economic front, China's trade surplus came in at $60.4 billion in August, according to a report released by the Chinese Bureau of Statistics. The consensus estimate called for a more modest surplus of $48 billion. Exports fell 5.5 percent year-over-year, smaller than the 6.6 percent drop expected by economists. Imports plunged 13.8 percent compared to expectations for a 7.9 percent drop.
Revised estimate released by Japan's Cabinet Office showed that Japanese second quarter GDP fell 0.3 percent sequentially, smaller than the 0.4 percent drop estimated initially. Annually, GDP contracted 1.2 percent compared to the preliminary estimate of a 1.6 percent decline.
The Japanese Ministry of Finance reported that Japan's current account surplus came in at 1.808 trillion yen in July compared to the 1.732 trillion yen surplus expected by economists. In June, the surplus was 55.8 billion yen. However, the trade deficit of 108 billion yen was wider than expected.
A Bank of Japan report showed that bank lending in Japan rose 2.7 percent year-over-year in August compared to a 2.6 percent increase in July.
The results of a survey by National Australia Bank showed that business confidence in Australia fell in August, with the corresponding index dropping to 1 in August from 4 in July. However, the business conditions index rose 5 points to 11.
Europe
European stocks opened higher and have seen further upside since then. Positive trade data out of Germany and M&A activity are supporting risk appetite.
In corporate news, Whitbread reported a 3.3 percent increase in its second quarter like-for-like sales and said total sales increased 1.1 percent. The company also said it remains on track to meet full year expectations.
Paddy Power and Betfair finalized their merger agreement following the announcement of a provisional agreement last month. Mitsui Sumitomo announced an agreement to buy U.K.'s Amlin for 3.5 billion pounds.
On the economic front, the German Federal Statistical Office reported that German exports rose 2.4 percent month-over-month in July, the fastest rate of growth since last December. Economists estimated a 1 percent increase. Imports were up 2.2 percent, exceeding the 0.7 percent increase expected by economists. The trade surplus rose to a record 25 billion euros in July from 24.1 billion euros in June.
A report released by the British Retail Consortium showed that like-for-like sales in the U.K. fell 1 percent year-over-year in August following a 1.2 percent increase in July. Total sales edged up merely 0.1 percent.
U.S. Economic Reports
The economic calendar of the holiday-shortened week is light, with only a handful of first-tier of economic data due to be released. The focus is likely to rest on the Labor Department's jobless claims and producer prices data and the results of the University of Michigan's preliminary U.S. consumer sentiment survey for September.
The Federal Reserve's consumer credit report for July, the Labor Department's import and export prices data for August, the Commerce Department's wholesale inventories report for July, the Treasury's monthly budgetary statement for July and the results of auctions of 3-year and 10-year notes and 30-year bonds round up the economic events of the week.
The Federal Reserve is scheduled to release its report on outstanding consumer credit at 3 pm ET. Economists expect consumer credit to have increased by $18 billion in July compared to the $20.7 billion increase in June.
Consumer credit rose by $20.7 billion in June by virtue of a $15.2 billion surge in non-revolving credit. Revolving credit tied to credit cards rose $5.5 billion.
Stocks in Focus
Strategic Hotels & Resorts (BEE) said it has entered into a definitive agreement with Blackstone to acquire all outstanding shares of common stock of Strategic Hotels & Resorts, Inc., for $14.25 per share in cash
Teco Energy (TE) announced a definitive agreement to be acquired by Canadian utility Emera for $27.55 per share in cash or $10.4 billion in total, including the assumption of debt.
Microchip (MCHP) tightened its second quarter earnings and sales guidance and said its core business is tracking towards its original guidance, while Micrel sales for the partial quarter are ahead of its original guidance.
JD.com (JD), China's largest online direct sales company, said its board has authorized a share repurchase program under which the company may repurchase up to $1.0 billion worth of its American depositary shares over the next 24 months.
Casey's General (CASY), FuelCell Energy (FCEL), Korn/Ferry (KFY), Men's Wearhouse (MW), Pacific Sunwear (PSUN), Pep Boys (PBY) and TiVo (TIVO) are among the companies due to release their quarterly results after the close of trading.
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April 17, 2026 15:29 ET The ongoing conflict in the Middle East continues to raise concerns for policymakers who worry about the impact of the supply shock and high energy prices on the real economy. Producer price data and various survey results on the housing market were the main news from the U.S. this week. In Europe, industrial production data for the euro area gained attention. GDP figures out of China and the policy move by the Singapore central bank were in focus in Asia.