Hang Seng falls on more China weakness, FTSE 100 seen lower
Asia markets have fallen and the FTSE 100 index is forecast to open lower as global markets continue to unwind the China-inspired gains seen at the start of the week.
The Hang Seng index is 1.5% lower, having rallied yesterday due to China stimulus measures and a debt restructuring deal for property firm Country Garden.
Today’s mood wasn’t helped by the latest snapshot of services sector growth in China, with the headline reading below expectations at an eight-month low of 51.8 compared with July’s 54.1.
Prior to the release of services figures in the UK and Europe, CMC Markets expects the FTSE 100 to open 22 points lower at 7430. London’s top flight closed 12 points lower last night, having been above 7500 at one point in the morning.
The return of US markets after yesterday’s Labor Day holiday should provide some impetus to trading, particularly after Friday’s jobs report fuelled hopes that US interest rates will be unchanged at the Federal Reserve’s 20 September meeting.