Markets rebound with China pledging more measures to support economy - 9.9.2015

US stocks rebounded on Tuesday on hopes Chinese authorities will undertake new measures to support the economy. The dollar weakened, with the ICE US dollar index falling 0.2%. The S&P 500 recovered its Friday drop and recorded second-best gain this year as it closed 2.5% higher, with all ten main sectors finishing higher led by healthcare and technology stocks. Teco Energy shares rallied 25% after Emera Inc. agreed to buy the company for $6.5 billion in cash. Meredith Corp. jumped 10% after Media General Inc. agreed to buy the company in an acquisition valued at about $2.4 billion. Apple Inc. rose 2.8% a day ahead of unveiling of its iPhone 6S and iPhone 6S Plus models at September 9 hardware event. The trading volume was about 6.8 billion shares on US exchanges, 4.5% below the three-month average. Today at 12:00 CET Mortgage Applications will be released in US. At 15:00 CET August Job Openings and Labor Turnover Summary will be released by the Labor Department. The tentative outlook is positive.

European stocks rose on Tuesday as investor confidence was boosted by stronger than expected trade data from Germany and a rebound in Chinese equities which closed 2.9% higher after early session losses. The euro grew stronger against the dollar. The Stoxx Europe 600 rose 1.2%. Germany’s DAX 30 outperformed and added 1.6% after report the trade surplus growth in Europe’s largest economy exceeded forecasts and rose to €22.8 billion euros ($25.6 billion) in July, indicating robust demand for European goods despite slowing Chinese economy. European stocks were also supported by the news euro-zone’s second quarter gross domestic product was revised upward to 1.5% from an initial estimate of 1.2%, aided by increased exports. Today no important economic data are expected in euro-zone. At 9:30 CET July Industrial and Manufacturing productions will be released in UK. At the same time July trade balance will be published. The tentative outlook is negative for the Pound.

Nikkei rallied 7.7% today with yen weakening as market sentiment was buoyed by rebound in global markets and statement by prime minister Abe he plans to lower corporate taxes. Stocks rose also as public pension funds bought shares in bargain hunting after Nikkei dropped to seven month low on Tuesday. Tomorrow at 00:50 CET financial data on foreign and domestic purchases of bonds and stocks in the previous week will be released in Japan. At the same time July Machine Orders will be published. The tentative outlook is negative.

Chinese stocks advanced on Wednesday and the Shanghai Composite Index gained 2.3% as the Ministry of Finance said the government will strengthen fiscal policy, boost infrastructure spending and speed up reform of its tax system to support the economy.

Today at 16:00 CET Bank of Canada rate decision will be released, the interest rate is expected to be left unchanged at 0.5%. At 22:00 CET the Reserve Bank of New Zealand interest rate decision will be announced. The central bank is expected to cut the interest rate 0.25% to 2.75%.

Oil futures prices are rising today after falling on Tuesday following data China’s crude oil imports in August fell 13% compared with imports the same month a year ago to 26.59 million tons while exports dropped 33% to 220,000 tons, consistent with country’s economic slowdown.