Things That Changed Overnight Today: China’s Recession To Global Market Cues For Sensex Today

Following weakness in Asian markets ahead of significant economic data releases in the area, the Indian stock market is anticipated to open lower on Tuesday. For a holiday, the US markets were closed.

Today also sees the publication of purchasing managers index readings for China, India, and Hong Kong, as well as the Reserve Bank of Australia’s announcement of its interest rate decision. The Philippines and Thailand will both announce inflation figures.
The key Indian indexes, the Sensex and Nifty, closed the day higher thanks to encouraging global indications and expectations that the US Federal Reserve may decide against raising interest rates in September.

“In the future, domestically supportive factors should help indexes with broader market continuing momentum. Sectoral rotation would continue, presumably favoring specialized and lagging industries. Markets will be waiting for significant Services PMI data from Europe, the UK, and India, according to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.
Key market indicators for the Sensex today are as follows:

Chinese markets

Asian markets declined as important economic data releases occurred around the region and as investors paid attention to China’s initiatives to revive its faltering economy.
Japan’s Nikkei 225 and Topix, two Japanese indices, were trading slightly below the flat line.

Following the announcement that the country’s August inflation rate was higher than anticipated at 3.4%, South Korea’s Kospi dipped 0.19% while the Kosdaq was unchanged.
Compared to the HSI’s closing price of 18,844.16 the futures of the Hong Kong Hang Seng index were trading lower at 18,719 points.
The Indian benchmark indexes were off to a bad start, as Gift Nifty was trading down at 19,580 compared to Nifty futures’ last closing of 19,614.

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Wall Street

Because of Labour Day, the US stock market was closed on Monday.
US equities futures trade in Asia was muted. The Nasdaq Composite was just over the flatline, while the Dow Jones Industrial Average and S&P 500 futures were below it.
Japan’s domestic spending declines

Japan’s household spending falls

According to official statistics released on Tuesday, household expenditure in Japan declined by 5.0% in July compared to the same month last year, continuing a five-month decrease. The median market prediction had called for a 2.5% decline. In contrast to the forecasted 0.7% growth, household expenditure decreased 2.7% month over month on a seasonally adjusted basis.

The US economy may never be surpassed by China.

According to Bloomberg Economics, the nation’s confidence downturn is becoming more entrenched, thus China may not soon replace the US as the largest economy in the world. It is currently predicted that China won’t surpass the US in terms of gross domestic product until the middle of the 2040s.

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It will only be by a “small margin” before “falling back behind.” Prior to the epidemic, economists predicted that China would seize the lead and maintain it as early as the start of the following decade.

According to analysts, China’s GDP will only increase by 3.5% in 2030 and 1% or less by 2050. Prior estimates were 4.3% and 1.6%, respectively, thus this is less than expected.
London office values may fall 20% this year

According to experts at JPMorgan Chase & Co., office buildings in London’s financial sector would lose a fifth of their value in the year leading up to March. The British Land Co. Plc. no longer receives analyst buy recommendations.

According to data from the Investment Property Databank Index, city values have declined by 8% in recent months, experts like Neil Green said in a note to clients.
British Land was downgraded by the experts from Overweight to Neutral after two years. TP ICAP Group Plc and UBS Group AG are two of British Land’s tenants.