US equity indices had a mixed performance, with the Dow 30 index down 86.02 points to 17,787.20 (-0.48%), the S&P 500 index down 2.11 points to 2,096.95 (-0.10%) and the Nasdaq up 14.55 points to 4,948.06 (+0.29%). The S&P 500 VIX, which is considered a gauge of market uncertainty, is up 1.07 points to 14.19 (+8.16%) to indicate that risk aversion is in play.
Economic data from the US came in mixed, as personal spending jumped 1.0% while personal income rose only 0.4%. The Chicago PMI showed a drop to industry contraction while the CB consumer confidence index reflected weaker optimism.
In other stock market news, a US court ruled that the $24.9 billion buyout of Dell was underpriced by about 22%. Meanwhile, General Mills announced a recall of 10 million pounds of flour on E.coli outbreak investigations. Also on Tuesday, Japanese communications firm Softbank announced its plans to sell $7.9 million worth of Alibaba shares to fund its debt.
European equities react to latest Brexit polls
Based on telephone and online surveys conducted by The Guardian, public opinion may be shifting in favor of exiting the EU, reviving speculations of additional economic and financial uncertainty in the region. The FTSE slid 40.0 points to 6,230.79 (-0.64%), the German DAX index fell 70.49 points to 10,262.74 (-0.68%), the French CAC 40 was down 23.78 points to 4,505.62 (-0.53%) and the Euro Stoxx 50 was down 26.89 points to 3,063.12 (-0.87%).
Data from the euro zone was also mixed, as German retail sales sank 0.9% instead of showing the projected 1.0% gain while unemployment change came in at -11K versus the projected -4K reading. Euro zone flash CPI estimates came in line with consensus at a 0.1% decline for the headline figure and a 0.8% increase for the core figure.
Asian equities mixed despite strong Chinese PMI
China reported an official manufacturing PMI of 50.1 for May, unchanged from the previous month’s reading, versus expectations of a decline to 50.0. The official non-manufacturing PMI slid from 53.5 to 53.1 while the Caixin version of the manufacturing PMI dropped from 49.4 to 49.2 to indicate sharper industry contraction.
The China A50 index is down 26.64 points to 9,644.81 (-0.29%), the Hang Seng is up 20.91 points to 20,836.00 (+0.10%) and the DJ Shanghai index is up 0.43 points to 398.62 (+0.12%). In Australia, the quarterly GDP reading beat expectations with a 1.1% gain versus the projected 0.6% expansion.
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