Pessimism returned to markets

The index of shares in the Asia-Pacific MSCI retreated by 0.6% in the first days of September after the previous month’s accumulated losses of over 10%. In China, the Shanghai Composite lost 1.23 percent and the CSI300 remained almost unchanged. The Japanese Nikkei, however, dropped by 3.8%, which is added to losses from 8.2% in August. Shares in Australia and Indonesia fell by over 2 percent.

Pessimism is not only transferred but prevailed in Europe where the FTSEurofirst 300 index slid 2.8 percent. August was the worst month for the pan-European index of four years. The blue chip index in the region Stoxx 50 Index and the main indicators of stock exchanges in London, Paris, Berlin and Madrid lost around 3% of its value. So European shares erased some of the accumulated between Thursday and Monday gains that marked the strongest three-day growth of 25 years. The main US indexes started trading with a drop between 0.7 and 1.1 percent.

“The problem is that we have only fleeting bursts of optimism, like last week, when data for US GDP was revised upward, but the main theme remains the weakness of markets in China,” said Philip Marie told Reuters, strategist at Rabobank.

Investors turned to regarded as safe currencies and assets. The euro and the Japanese yen appreciated against the dollar by respectively 0.5 and 1.1 percent and the price of gold rose more than 0.7 percent to 1141 dollars an ounce. In August, the precious metal rose by 3.5%, which is the best monthly result since January.