European Stocks Edge Higher While Japan’s Nikkei Closes Lower
Among local indices, Germany’s DAX advanced 0.51%, France’s CAC 40 edged up 0.05%, and the U.K.’s FTSE 100 added 0.10%.
Quick overview
- U.S. markets were closed for Labor Day, but key economic data releases are expected to dominate the week.
- International markets started positively, with the Shanghai Composite rising and Hong Kong's Hang Seng jumping 2.15% due to Alibaba's surge.
- Europe's Euro Stoxx 50 gained 0.31% following stronger-than-expected manufacturing PMI data, marking a rebound in industrial recovery.
- Attention will shift back to the U.S. with critical data releases, including the August jobs report and CPI, influencing the Federal Reserve's upcoming policy decisions.
Although U.S. markets were closed on Monday for Labor Day, investors expect the United States to dominate the week’s agenda as key economic data releases approach.
International markets started the week with a positive tone, with gains across major Asian and European indices. In Asia, the Shanghai Composite rose 0.46%, while Japan’s Nikkei 225 fell 1.22%, pressured by a 9.1% drop in Advantest (6857.T) on profit-taking. SoftBank Group, a heavyweight in artificial intelligence investments, also slid 6%. The standout performer was Hong Kong’s Hang Seng, which jumped 2.15% on the back of an 18.5% surge in Alibaba.
Industrial recovery lifts Europe
In Europe, the Euro Stoxx 50 gained 0.31% after the eurozone’s manufacturing PMI came in stronger than expected. The index climbed to 50.7, beating both forecasts and the preliminary reading of 50.5. This marks a notable rebound from 49.8 in July and the highest reading since June 2022, breaking a downward trend.
Among local indices, Germany’s DAX advanced 0.51%, France’s CAC 40 edged up 0.05%, and the U.K.’s FTSE 100 added 0.10%.
Focus shifts back to the U.S.
While Wall Street was quiet on Monday, the U.S. is set to be the center of attention for the rest of the week, with several critical data releases beginning Tuesday. The highlight will be Friday’s August jobs report, which follows a weaker-than-expected July reading that also included downward revisions to prior months. Those results reinforced expectations that the Federal Reserve may cut rates in September.
With just two weeks to go before the Fed’s policy meeting, the labor market report will be one of the two most important inputs guiding its decision—the other being the August CPI, due on Thursday, September 11.
In the meantime, Wall Street comes off a strong August, with the S&P 500 posting a 3.56% monthly gain and closing at a record 6,501.86 points last Thursday.
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