On the stock market declines, again concerned about China – Onet.pl

At the close the Dow Jones Industrial fell by 0.77 per cent., To 17432.87 points. The index is close to its lowest level in six months.

S & amp; P 500 lost 0.58 percent. and amounted to 2,067.65 points.

Nasdaq Comp. It fell by 0.96 per cent. and amounted to 5,039.78 points.

The S & amp; P 500 ended last week a decrease of 2.2 percent. and it was its worst weekly performance since March. Investors sold shares after the release of weaker than expected macro data, including the economies of China and the euro zone, and a series of mixed US corporate quarterly reports. US market benchmark index ended in the red just four of the last five weeks.

Please note that American investors on Monday focused on China after a very strong declines in those markets returned to action. SCI index in Shanghai Stock Exchange lost in the first session this week of 8.5 percent. and it was the worst day for the Chinese market share of almost eight years.

Before the collapse of the Chinese stock market prices recovering the losses incurred during the correction at the turn of June and July. From the local minimum from the beginning of July SCI index has gained 16 percent. On Monday, however, gave more than half of those profits in one session.

“Investors fear that the Chinese Government withdraws the support it provides to the market. Without this, the market is not able to sustain at current levels, “- rated Sam Chi Yung, investment strategist at Delta Asia Securities.

quotations of Chinese shares does not help recent disappointing economic data from China. With Friday’s reading it indicates that the Chinese PMI manufacturing fell in July to 48.2 points. with 49.4 points. at the end of June. This is the lowest result of this indicator over 15 months, and the fifth consecutive reading below 50 pts., Which is taken as a signal drop in activity in the sector.

Monday was reported in China, in turn, 0.3-percent. yoy decline in the index of industrial revenue after rises in May and April by 0.6 percent. and 2.6 percent.

With the US economy met market data on durable goods orders in June . Mom index rose 3.4 percent. after the May fell by 2.1 percent. mom after adjustment. Analysts had expected orders to rise by 3.2 percent. mom.

Orders for durable goods excluding transport equipment rose 0.8 percent. against a decline of 0.1 percent. a month earlier after adjustment. Here, analysts expected a rise of 0.5 percent. mom.

This week is scheduled for the meeting of the Federal Reserve. Fed statement issued on Wednesday evening. The market assumes that the US central bank will leave interest rates unchanged this week. In view of the multiple signals readiness to increase later in the year, the message after the meeting may contain clues to the Fed’s preferred term.

Most economists assume that the US central bank will raise interest rates for the first time in nearly a decade in September or December.

Better-than-expected Ifo index reading was from Germany. The index reflecting the mood among German companies in July amounted to 108.0 points. to 107.4 points. in the previous month. Analysts had expected the index to fall to 107.2 points.

The European Commission said that the representatives of Greece’s creditors started discussions with the Greek authorities on a third aid program for the country.

The Greek government wants to see negotiations the new aid program ended 18 August, because two days later Athens must notify the European Central Bank with 3.2 billion under repay their obligations.