“U.S. stocks were set to open higher on Tuesday after weak economic data out of China bolstered hopes of more stimulus measures from the Chinese government,” Tanya Agrawal reports for Reuters.
“Wall Street capped a tough week on Friday, with major indexes closing down more than 1 percent, after a mixed August jobs report did little to quell uncertainty about whether the Federal Reserve will increase interest rates this month. China’s imports shrank far more than expected in August, falling for the 10th straight month. Imports fell 13.8 percent from a year earlier, more than the 8.2 percent drop economists had expected,” Agrawal reports. “However, Chinese stocks rose nearly 3 percent on Tuesday as a surge in late-afternoon buying helped erase early losses. Late on Monday, China said it would remove tax on dividend incomes for investors who hold stocks for more than a year in an effort to encourage longer-term investment.”
“Global financial markets have been rattled in recent weeks by fears that China’s slowdown could drag on already sluggish global growth, prompting some investors to bet that the U.S. central bank will delay a hike until the end of the year,” Agrawal reports. “The Fed has said it will raise rates for the first time in nearly a decade when it sees a sustained recovery in the economy. While the labor market has strengthened, inflation remains below the 2 percent target.”
Read more in the full article here.
MacDailyNews Take: This could be a momentous week for AAPL. We’ll see how Mr. Market reacts to the news coming out of Apple’s special event tomorrow.