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Daily Scan: Asia recovers without China, Europe rallies
Updated throughout the day
It appears calm was restored to Asia today as China focused on marching bands and rolling tanks, allowing investors to focus on upbeat US data. Tokyo ended 0.48% higher and Seoul ended up 0.02%. There were also comfortable gains for Singapore and Taipei.
European stocks are also rallying as future data points to Wall Street holding on to its gains from the previous day. The market will no doubt be encouraged by a report by Automatic Data Processing and Moody’s Analytics that shows private payrolls in the US increased by 190,000 jobs last month. That said US shares still sit 8.5% their record high touched in May. So we have a ways to go.
Here’s what else you need to know:
Didi Kuaidi driver faces staggering 100,000 yuan fine. Beijing’s recent crackdown on car-hailing apps hit a new low this week as a Guandong-based Didi Kuaidi driver got slapped with a tremendous 100,000 yuan fine for allegedly “engaging in illegal transport activities and reaping illicit profits.” South China Morning Post
U.K. services PMI falls to 27-month low. While that definitely sounds bad, it’s not. The U.K.’s highly-important services sector growth came in at 55.6 in August – its lowest reading since April 2013 – but well above the threshold separating growth from contraction. However, if you couple it with last month’s manufacturing data, things start looking a bit disconcerting, as Markit’s Chris Williamson said: “the three PMI surveys collectively are pointing to the weakest monthly expansion since May 2013.” Markit
Eurozone PMI climbs to 54.3. Despite all the fragility and nastiness surrounding it, the Eurozone economy proved to be more than resilient to the storms of summer. Business activity in the region surged at its fastest pace in over four years, taking the final Markit Eurozone PMI from 53.9 in July, to 54.3 in August. Surprisingly, Spain was the largest contributor of economic growth, posting its second-highest expansion reading for the past eight and a half years. Markit
S&P cuts Glencore outlook to negative. As if things weren’t bad enough for the once-mighty Glencore, the ratings agency Standard & Poor’s decided to slash its credit outlook rating from stable to negative. The current and continuing slump in commodity prices, seemed to be the main driver behind the move. Financial Times
Japan services PMI surges to 22-month high. “Delicate” may been a favorite word to describe Japan’s economy but you’d never think that just by looking at their services sector. The Nikkei Japan Services PMI came in at 53.7 in August, more than two points higher than its July reading and at its highest level in nearly two years. New service provider growth apparently climbed at a robust pace, while business sentiment strengthened once again to reach a two-year high. Markit
Australian retail sales surprise to the downside. After climbing 0.6% in June, retail sales down under fell 0.1% in July, notching up its first fall since June 2014 and surprising analysts