BANGKOK – Mixed Signals in Global Markets
Global stock markets showed mixed results on Monday as the U.S. courts lifted higher tariffs, prompting investors to observe the unfolding situation. The U.S. market was closed due to Labor Day, but futures on the S&P 500 and the Dow Jones Industrial Average saw a slight rise of 0.1%.
A ruling from the U.S. Court of Appeals for the Federal Circuit on Friday concluded that Trump overstepped his authority by declaring a national emergency to impose significant import taxes on nearly all countries. This ruling reinforced a decision made by a federal trade court in New York in May. However, the 7-4 split decision from the Court of Appeals reversed parts of the earlier ruling, allowing the administration to appeal to the U.S. Supreme Court.
In Europe, stocks were on the rise, with Germany’s DAX gaining 0.5% to reach 24,018.29, and Paris’ CAC 40 climbing 0.4% to 7,735.88. The UK’s FTSE 100 increased by 0.3%, settling at 9,212.78.
In Asia, Hong Kong’s Hang Seng surged by 2.2% to 25,617.42, while Shanghai’s composite index saw a more modest increase of 0.5%, reaching 3,875.53. A government report released on Saturday indicated a slight recovery in factory activities in China for August, with the Purchasing Managers Index (PMI) rising from 49.3 in July to 49.4. This PMI, on a scale from 0-100, indicates that a score above 50 signifies expansion.
Another private sector survey, the RatingDog China General Manufacturing PMI, showed a jump from 49.4 in July to 50.5 last month. Averaging the two studies, the PMI resulted in 49.9, which suggests some resilience within the manufacturing sector despite U.S. tariffs on Chinese products, according to Zichun Huang of Capital Economics. However, negotiations between China and the U.S. for a broader trade deal are still ongoing.
Huang remarked that while the PMI indicated China’s economy accelerated last month due to growth in manufacturing and services, he doesn’t foresee much turnaround for the rest of the year.
Meanwhile, Japan’s Nikkei 225 Index dropped by 1.2% to 42,188.79, and Korea’s Kospi decreased by 1.4% to 3,142.93. In Australia, the S&P/ASX 200 fell by 0.5% to 8,924.70, while Taiwan’s benchmark lost 0.7%. In contrast, India’s Sensex experienced a slight rise of 0.7%.
Indonesia’s stock market saw a drop of 1.2% after President Prabowo Subianto announced plans to revoke lawmakers’ privileges in response to public protests, which had reportedly left six dead—a rare concession from the government amid rising public discontent.
On Wall Street, the previous trading week ended on a positive note, although benchmarks slipped from their recent all-time highs. The S&P 500 closed the week at 6,460.26, dropping 0.6% after reaching record levels, while still recording a 1.9% gain for August, marking its fourth straight month of profits. Year-to-date, the index is up by 9.8%.
The Dow also retreated by 0.2% from its own record high, and the Nasdaq composite fell 1.2%. Technology stocks faced heavier losses, which offset gains in healthcare and other sectors.
Dell Technologies marked the largest decline in S&P 500 stocks for the day, dropping 8.9% after the company’s second-quarter revenues surpassed analyst expectations, yet concerns over PC revenue margins persisted.
Mixed economic reports have provided traders with reasons to lock in some profits after a week of strong performances. The Commerce Department announced that prices rose by 2.6% year-over-year in July, consistent with June figures and in alignment with forecasts from economists. Excluding volatile food and energy prices, the inflation rate increased by 2.9% from the previous year—the highest since February—up from 2.8% in June.
A recent consumer sentiment survey from the University of Michigan indicated a dip in optimism for August, hitting its lowest point since May, largely due to concerns over rising prices and broader economic issues after the release of government employment data that showed a decline.
In early trades on Monday, U.S. benchmark crude oil prices recovered from prior losses, reaching $64.63 per barrel, while international benchmark Brent crude rose by 60 cents to $68.08 per barrel. The U.S. dollar edged up slightly, moving from 147.02 yen to 147.07, and the euro also increased from $1.1696 to $1.1725.
