Daily falls in the market point to a miserable month for September

Company News

by Glenn Dyer


The four trading days last week for US markets helped explain why many investors regard September as a miserable month.

It was the first trading week for markets this month (ignoring the September 1 session the previous Friday) and while by Friday’s close the S&P 500 had added 6.35 points, it still lost 1.3% for the week.

The Dow rose 70.2%, to 34,576.59, but fell 0.86% for the week, and the Nasdaq added 12.69, or 0.1%, to 13,761.53 but had shed 2.6% as the likes of Apple fell 6% and Tesla dropped 3.4%.

But the coming week looks busier and perhaps a little more fraught for markets globally because of the latest monthly update on inflation in the United States, due on Wednesday and Thursday.

Economists expect it to show headline prices were 3.6% higher in August than a year earlier.

That will be well above the 3% (2.97% unrounded) reached in June and 3.2% in July.

But a higher reading will feed those renewed fears about inflation which re-emerged last week in the wake of the latest rise in oil price.

As well, for the week, Eurozone shares fell 1.2%, Japanese shares fell 0.3% and Chinese shares fell 1.4%.

Following the weak global lead and worries about China, Australian shares fell 1.7% last week (after Friday’s 14 point dip to 7,156.7 at the close) for the week with falls led by materials, IT, utility and telco shares.

It was fourth daily fall in a row last week for the local market.

A weakening $A didn’t help with the RBA leaving rates on hold and the $US rising again.

Wall Street’s weakish day on Friday saw the ASX 200 share price futures end with a 4 point, meaning a similar start lies ahead for the local market later this morning.
 

Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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