Weak Data From China, Germany And U.S. Disappoints Markets

China's very weak Purchasing Manger Index data affected the downfall of Asian stocks a two-day winning high.

The Chinese HSBC PMI data for this month fell to 50.5 from last month’s figure of 51.6. February’s figure was 50.4. Although this is a monthly decline, it is still above the target price of 50 which represents an economy in growth. A number below 50 represents an economy in shrinkage.

New Chinese export orders index fell to 48.6 this month from March’s figure of 50.5. This figure gives analysts the sentiment that we are not yet out of the murky waters. It was only last week that the Q1 Gross Domestic Product number was released showing a gain of 7.7 per cent. This was below analyst expectations of an 8% increase, which raised concern over the expansion of the Chinese economy.

In the U.S., figures were released showing that home sales dropped to a seasonally adjusted yearly number of 4.92 million in March, representing a drop of 0.6 per cent. Despite the fact that analysts had expected a rise in the number of home sales, this number is still 10.3 per cent greater than this time last year.

The German flash manufacturing PMI release showed a drop to 47.9 this month from 49.0 in March. It was expected that the number would remain unchanged.

Stocks
Less volume in the overnight session from 24 hours ago saw the Asian stocks decline on the back of the weak Chinese PMI data and US home sales numbers. The Nikkei 225 lost 0.32per cent, which was still in the black overall after 2 per cent gains yesterday. The Shanghai Composite shed 2.1per cent, and the Hong Kong Hang Seng dropped 1.21 per cent.

European stocks gained today after the German economic data release. During the European morning session EURO STOXX 50 was up 0.60 per cent, the French CAC 40 gained 0.84 per cent and the German DAX 30 crept up by 0.01 per cent.

U.S. stocks ended yesterday up. There was high demand for commodities and their related companies such as mining, energy and outdoor machinery. The DJIA closed up by 0.14 per cent, the S&P 500 gained by 0.47 per cent and the Nasdaq was up by 0.86 per cent.

Forex
A low trading volume in the money markets resulted with with the JPY as the biggest mover. The USD against the JPY lost 0.51 percent, as investors moved in for the kill for a nicely priced yen after weakening brought on by the BOJ. The AUD was down against the Greenback, as China is Australia's biggest trade partner This knocked the AUD down 0.39 per cent. The Greenback also gained against the EUR : 0.2 per cent and by 0.21 percent against the GBP.

Commodities
Warmer weather continues to bring the natural gas price down, losing another 0.28 percent today. Crude oil was down by 0.77 per cent on the release of the Chinese PMI data. Silver lost 1.10 per cent while gold gained 0.18 per cent.

Today’s trading
Several European PMI data reports will be released across Europe. Add the U.S. new home sales and manufacturing activity data will make for a busy day's trading.