Market Update & Important Indicators
U.S. stocks rebounded after falling sharply in the previous session on deepening worries about China. The moves come after deep losses Tuesday that sent the Dow careening to a 470-point loss, dashing hopes that the volatility of recent sessions had abated. That selloff was sparked by renewed concerns over slowing growth in China after a weak manufacturing reading from the world's second-largest economy. While headlines out of China have been driving August's wide swings in U.S. stocks, investors' attention will shift back to the U.S. later this week with Friday's jobs report for August. The data could be a key factor in the Federal Reserve's decision over whether to raise interest rates for the first time in nearly a decade at its meeting this month. Economists surveyed by The Wall Street Journal expect 220,000 new jobs were created in August, up from 215,000 in July. The unemployment rate is expected to tick lower to 5.2% from 5.3%. Private-sector jobs data released Wednesday showed that payrolls in the U.S. in August expanded at a more modest-than-expected clip, according to Automatic Data Processing Inc. and forecasting firm Moody's Analytics.Sellers eager to cash out before a four-day holiday in China and buyers believed to be backed by Beijing staged a stock-market tug-of-war in Shanghai, leaving shares down slightly after a tumultuous trading session. Deepening worries over China's slowdown pushed down most markets elsewhere in the region, including the Australian dollar, which hit its lowest level in more than six years. The Shanghai Composite Index finished down 0.2% at 3160.17. But it staged two striking rebounds during the trading day: The benchmark was down as much as 4.7% in the morning, before surging into positive territory. It slumped into the negative in the afternoon, only to surge again in the final half-hour of trading.
Copper futures closed higher in London, as short sellers covered their positions ahead of a national holiday in China and adverse weather looks set to crimp supply. Other metals finished mixed. Gold retreated 0.6% to US$1,134/oz, while brent recovered 1.9% to US$50.50/bbl. The AUD is buying US$0.70.
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