Equity markets continue lower, catalysed by weak Chinese data

Downbeat data on Chinese industrial profits yesterday, showing an 8.8% decline in August and the nervous sentiment for risky assets continues this week added to the negative tone. 

The major indices closed the day lower, e.g. Euro Stoxx50 down 2.4%, S&P down 2.6%, led by declines in the energy and materials sectors. This morning Asian bourses are trading with significant losses. 

"The next major Chinese data releases are the PMIs due this week. However, they are unlikely to provide much comfort to markets, as for slight declines in the official manufacturing PMI (from 49.7 to 49.5) as well as in the Caixin service PMI (from 51.5 to 51.0)", says Danske Bank.