OPENING CALL: The Australian share market is expected to open lower. The SPI200 futures contract expected to open down 75 points.
Manufacturing activity slowed around the world in September and trade flows are set to grow this year at the weakest pace since the financial crisis, as tariffs rise and the global economy cools.
The U.K. Financial Reporting Council on Tuesday opened an investigation into Ernst & Young LLP’s audits of financial statements of Thomas Cook Group PLC, the British travel company that collapsed on Sept. 23 after rescue talks broke down
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Australian shares rose after the central bank cut the official cash rate by 0.25 percentage point to 0.75%, a record low.
Although the move was broadly anticipated and is the third cut this year, the benchmark S&P/ASX 200 index closed 0.8% higher at 6742.8, the first trading day of the fourth quarter.
Health care stocks gained 2%, while financials were 0.3% higher and energy shares ended down 0.4%. Netwealth Group led losers after dropping 3.8%, but Nufarm surged 15%, on top of a 26% gain the previous trading day when it said it would sell its South American unit.
Management’s manufacturing index to its lowest level since 2009 pulled benchmark stock indexes lower, fueling haven demand for the precious metal.
Crude futures settled lower as a reading of U.S. manufacturing activity at its lowest level in more than a decade fed concerns over a slowdown in energy demand, and Ecuador’s plan to leave OPEC led to expectations that it will add more oil to the world market.
West Texas Intermediate crude for November delivery shed 45 cents, or 0.8%, to settle at $53.62 a barrel on the New York Mercantile Exchange, with front-month contract prices logging their lowest finish since Aug. 8, according to Dow Jones Market Data. Prices have now fallen for six sessions in a row, the longest losing streak since the 12 session decline ended Nov. 13, 2018.
In Japan, the Nikkei climbed 0.6%, despite data showing sentiment among Japanese large manufacturers falling to its weakest level in more than six years.
Investors were trying to gauge how Japan’s increase in local sales tax, which came into effect Tuesday, would affect consumer spending.
Japanese shares were led by gains in electronics and financial firms, on hopes for a policy stimulus and as the yen weakens against the dollar.
South Korea’s benchmark Kospi closed up 0.5% at 2072.42, rising for a second straight session. The broad market lacked strong leads so the index was swayed by individual stocks, Shinhan Securities said. Trading was mixed with pharmaceutical and shipbuilding companies rising while techs and autos fell.
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