Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. out of Afghanistan, Zoom Tumbles, China Economy Slows - What's Moving Markets

EconomyAug 31, 2021 06:36AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- The U.S. completes its withdrawal of troops from Afghanistan. International travel is getting harder as Covid-19 rears its ugly head again. Zoom Video tumbles after predicting slower growth, while China's economy slowed sharply in August due to Covid-related lockdowns. Here's what you need to know in financial markets on Tuesday, 31st August.

1. U.S. completes Afghanistan withdrawal

The U.S. has completed its withdrawal of military personnel from Afghanistan after 20 years of fighting, the longest war in the country’s history.

While a semblance of order has been restored to the final days of the withdrawal, the initially chaotic scenes triggered by the Taliban’s rapid takeover of the country have damaged the international and domestic standing of President Joe Biden, and led to crowing by official Chinese and Russian commentators over the perceived worthlessness of U.S. security guarantees. 

The upheaval has, however, still not resulted in any clear impact on global markets. In particular, the dollar has continued to be guided by expectations for monetary policy. Even against alternative haven currencies such as the Swiss franc and the Japanese yen, the dollar has risen over the last month.

2. Transatlantic travel gets tougher

The U.S. and European Union moved to tighten travel restrictions on each other, in a response to rising Covid-19 numbers on both sides of the Atlantic.

The EU issued guidance to member states that only fully-vaccinated people should be allowed to travel freely to Europe. The guidance isn’t binding as member states retain sovereignty over public health measures.

The U.S. for its part raised the alert status on arrivals from Germany and Switzerland (as well as Canada), reflecting their increasing case numbers.

The moves weighed on European flag carriers in early trading in Europe: IAG (LON:ICAG), the owner of Iberia, Vueling and (non-EU-based) British Airways, fell 3.0% to test a six-month low, while Deutsche Lufthansa (DE:LHAG) fell 1.1%.

3. Stocks set to edge higher; Zoom under pressure

U.S. stocks are set to open higher later, still supported by hopes of a late and gentle beginning to the reduction of monetary stimulus.

By 6:20 AM ET (1020 GMT), Dow Jones futures were up a little less than 0.2%, while the S&P 500 and Nasdaq 100 futures contracts were both up by a similar amount. The Dow had underperformed on Monday as reopening trades again suffered due to Covid-related newsflow.

Stocks likely to be in focus later include Zoom Video, which fell 12% in after-hours trading on Monday after predicting a slowdown in revenue growth from last year. Revenue grew ‘only’ 54% year-on-year in the second quarter. Also in focus will be Chinese gaming company NetEase (NASDAQ:NTES), which reported better-than-expected numbers to soften the multiple blows it has received from regulators in recent weeks. Cybersecurity expert Crowdstrike heads a very short earnings roster after the close.

4. Chinese economy slows; European data mixed

The extent of the Chinese economy’s slowdown under pressure from the latest wave of Covid-19 was apparent in the country’s official purchasing managers indices for August. The manufacturing PMI slowed to 50.1, only a whisker above the line separating growth from contraction. The services index however plunged into contractionary territory at 47.5, its lowest reading since February 2020.

There was also evidence of a slowdown in parts of Europe: French consumer spending fell by 2.2% on the month in July, while lending to U.K. households collapsed after the end of a tax holiday on house purchases.

In more positive developments, the number of unemployed in Germany fell more sharply than expected in August, by 53,000.

5. Oil can't break above $70 after Ida; API eyed

Crude oil prices again struggled with the $70 a barrel mark, as the aftermath of Hurricane Ida revealed no lasting damage to the Gulf of Mexico’s production capacity. Gasoline RBOB Futures prices were also relatively calm despite the prospect of a slow return to full throughput at refineries with just under 2 million barrels a day of capacity.

The effects of Ida may complicate the task of interpreting the American Petroleum Institute’s weekly data on U.S. crude and products inventories at 4:30 PM ET.

By 6:25 AM ET, U.S. crude futures were down 0.9% at $68.64 a barrel, while Brent futures were down 0.6% at $71.80 a barrel.

U.S. out of Afghanistan, Zoom Tumbles, China Economy Slows - What's Moving Markets
 

Related Articles

S&P raises Italy's outlook to 'positive' on reforms
S&P raises Italy's outlook to 'positive' on reforms By Reuters - Oct 22, 2021

(Reuters) - Ratings agency S&P Global (NYSE:SPGI) on Friday raised Italy's outlook to "positive" from "stable", saying the government's commitment to pro-growth reforms would...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (10)
gaddam prashanth
gaddam prashanth Aug 31, 2021 1:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Taliban warned American president Biden to leave their country,and made deadline..scared Biden obeyed and runway from Afghanistan..hahaha..I have never seen a president of USA like this joker..
Kwong To
Kwong To Aug 31, 2021 1:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
We had seen one before him and we are going to see another one after him
mat connors
mat connors Aug 31, 2021 11:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I want all my tax money back that they lost to the Taliban. 🤡🤡🤡🤡🤡 administration.
Jon Bal
Jon Bal Aug 31, 2021 8:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"Five days or five weeks or five months, but it certainly isn't going to last any longer than that"    -Donald Rumsfeld  11/15/2002
John Wim
John Wim Aug 31, 2021 8:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I remember that
Manish Manish
Manish Manish Aug 31, 2021 7:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
india, NSE moving markets...lol, participate in bid, govt department on sale..high time
Miles Mathewson
Miles Mathewson Aug 31, 2021 7:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Longest war and still they manage to loose it. How long do you think it will pass before the next 9/11?
Beef Eater
Beef Eater Aug 31, 2021 7:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you are mistaken... the longest war in US history was the American Indian wars, which lasted about 80 yrs
Jack Bquick
Jack Bquick Aug 31, 2021 7:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Exactly right. People don't know history (esp the Dems), so they make things up.
Steffen vdm
Steffen vdm Aug 31, 2021 7:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I would consider the US its desire to invade/rule other countries (e.g Vietnam, Afghanistan, Iraq, etcetera) as one continuous war and that will never end. Each invasion is just a chapter in a big eternal war.
Stoica Izabela
Stoica Izabela Aug 31, 2021 7:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hey
Stoica Izabela
Stoica Izabela Aug 31, 2021 7:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Izabela
IBRAHIM MUHAMMAD WAZIRI
IBRAHIM MUHAMMAD WAZIRI Aug 31, 2021 6:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
MSAWENKOSI Hlongwane
MSAWENKOSI Hlongwane Aug 31, 2021 6:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hey
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email