The stock markets Worldwide experience a marked decline this Tuesday. This decline is caused by worrying economic data that emerged in the service sectors both in China and Europewhich raised concerns about the health of the global economy. Simultaneously, the Central Bank of Australia made the decision to maintain r interest rates unchangedthus putting negative pressure on the Australian dollar.
A survey conducted in the private sphere revealed that during the month of August, activity in the service sector in China it grew at its slowest rate in eight months. This phenomenon was attributed to persistently weak demandwhich directly affects the second largest economy in the world.
In the euro zone and Great Britain, lThe data also indicated a decline in business activity in August, with the service sector in both regions entering a contraction phase.
European stock indices then reacted with mixed results; the pan-European benchmark STOXX 600 index runs almost unchanged. In this context, the German DAX and the French CAC 40 experience falls of 0.1% and 0.2%, respectively, while the British FTSE 100 registers a modest increase of 0.1%.
In addition, the MSCI index of Asia-Pacific stocks, excluding Japan, fell 1.1%, moving away from the highs reached three weeks ago. Globally, the MSCI stock index declined 0.2%, while equity futures Wall Street pointed towards an opening in negative territory.
Markets: concern for the health of the global economy
The disappointing global economic situation strengthened the position US dollarwhile the Australian dollar falls more than 1.5%, reaching its lowest point since Novembere, with a value of $0.6364. This decline came after Australia’s central bank opted to keep your interest rates at 4.10% and affirm that the recent data were consistent with the return of inflation to the target range of 2% to 3% towards the end of 2025.
On the other hand, the euro experiences a decrease of 0.6%, reaching 1.0729 dollars, its minimum in three months. In addition, the japanese yen it weakened by 0.5%, standing at 147.33 units per dollar, levels that led to the intervention of the Japanese authorities last year.
All these variables led to the dollar indexwhich assesses the performance of the US dollar against a basket of six competing currencies, to reach its highest level since March, standing at 104.75.
Source: Ambito
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