Posted at 05 September 2023 / Categories Market Roundups
Market Roundup
•U.S. factory orders fall in July
•US Indexes fall: Dow 0.56%, S&P 0.42%, Nasdaq 0.08%
•US Aug CB Employment Trends Index 113.02, 115.45 previous
•US Jul Factory Orders (MoM) -2.1%,-2.5% forecast,2.3% previous
•US Jul Durables Excluding Transport (MoM) 0.4% ,0.5% previous
•US Jul Durables Excluding Defense (MoM) -5.5%,-5.4% previous
•US Jul Factory orders ex transportation (MoM) 0.8%,0.2% previous
•GlobalDairyTrade Price Index 2.7%,-7.4% previous
•US 3-Month Bill Auction 5.315%,5.340% previous
•US 6-Month Bill Auction 5.300%, 5.350% previous
Looking Ahead Economic Data (GMT)
•01:30 Australia GDP (YoY) (Q2) 1.7% forecast, 2.3% previous
•01:30 Australia GDP Final Consumption (Q2) 0.2% previous
•01:30 Australia GDP (QoQ) (Q2) 0.3% forecast, 0.2% previous
•01:30 Australia GDP Capital Expenditure (Q2) 1.8% previous
•01:30 Australia GDP Chain Price Index (Q2) 1.8% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro declined against dollar on Tuesday as weak services sector data from China and the euro zone fuelled concerns about slowing global growth. China-exposed sectors such as luxury and construction & materials were among the top drags in Europe as data showed China's services activity expanded at the slowest pace in eight months in August.Meanwhile, the decline in euro zone business activity accelerated faster than initially thought last month as the dominant services industry fell into contraction, according to a survey which suggests the bloc could fall into a recession. The euro was down 0.69% after hitting a near 3-month low against the dollar at $1.0722. Immediate resistance can be seen at 1.0822(38.2%fib)), an upside break can trigger rise towards 1.0822 (11DMA).On the downside, immediate support is seen at 1.0711(23.6%fib), a break below could take the pair towards 1.0704(Lower BB).
GBP/USD: The pound fell to 12-week low against dollar on Tuesday after data showed after a survey showed business activity in Britain contracted last month.The UK S&P Global/CIPS composite Purchasing Managers’ Index (PMI) dropped to 48.6 in August from 50.8 in July, the lowest since January, although it was revised up from an earlier estimate of 47.9. The services sector PMI printed at 49.5, below the half century mark that separates growth from contraction. Sterling was last up 0.3% at $1.26265 on Monday. Markets are pricing in another hike after that to 5.75% by early next year even as other major central banks, such as the U.S. Federal Reserve and European Central Bank, appear close to the end of their respective tightening cycles. Immediate resistance can be seen at 1.2652(38.2%fib), an upside break can trigger rise towards 1.2676(50%fib).On the downside, immediate support is seen at 1.2535 (23.6%fib), a break below could take the pair towards 1.2496(Lower BB).
USD/CAD: The Canadian dollar weakened to a five-month low against its U.S. counterpart on Tuesday as investors assessed weak Chinese data and awaited a Bank of Canada interest rate decision, but higher oil prices capped the currency’s decline. China’s services activity expanded at the slowest pace in eight months in August as weak demand continued to dog the world’s second-largest economy. Jitters over global growth, particularly in China, led to investors flocking to the safe-haven U.S. dollar.The loonie was trading 0.3% lower at 1.3636 to the greenback, or 73.34 U.S. cents, after touching its weakest level since March 28 at 1.3669. Immediate resistance can be seen at 1.3646 (23.6%fib), an upside break can trigger rise towards 1.3681(Higher BB).On the downside, immediate support is seen at 1.3595 (5DMA), a break below could take the pair towards 1.3555(38.2%fib).
USD/JPY: The dollar strengthened to hit 10-month high against Japanese yen on Tuesday as jitters over global growth, particularly in China, caused investors to flock to the safe-haven U.S. currency. China's services activity expanded at the slowest pace in eight months in August, a private-sector survey showed on Tuesday, as weak demand continued to dog the world's second-largest economy and stimulus failed to meaningfully revive consumption. The decline in euro zone business activity accelerated faster than initially thought last month as the bloc's dominant services industry fell into contraction, according to a survey which suggests the bloc could drop into recession. The dollar climbed to a 10-month high of 147.8 yen Strong resistance can be seen at 147.87(23.6%fib) an upside break can trigger rise towards 148.21( Higher BB).On the downside, immediate support is seen 146.64 (5DMA), a break below could take the pair towards 146.66(Aug 30th low).
Equities Recap
European shares fell on Tuesday as weak services sector data from China and the euro zone fuelled concerns about slowing global growth, though gains in energy stocks helped crimp losses.
UK's benchmark FTSE 100 closed down by 0.20 percent, Germany's Dax ended down by 0.34 percent, France’s CAC finished the day down by 0.34 percent.
Wall Street's three major averages closed lower on Tuesday with the Dow leading declines as Treasury yields rose along with oil prices and investors assessed prospects for the Federal Reserve's interest rate path.
Dow Jones closed down by 0.56% percent, S&P 500 closed down by 0.42 % percent, Nasdaq settled down by 0.08% percent.
Treasuries Recap
U.S. Treasury yields rose after economic data showed resilience and Fed Governor Christopher Waller said it suggests that the central bank need not change rates any time soon.
The yield on the benchmark U.S. 10-year Treasury note rose 9 basis points to 4.26% after reaching 4.268%, its highest level since Aug. 25.
Commodities Recap
Oil prices rose to their highest since November after Saudi Arabia and Russia extended their voluntary supply cuts to the end of the year.
Brent crude futures rose by $1.04, or 1.2%, to settle at $90.04 a barrel, closing above the $90 mark for the first time since November 16, 2022. U.S. West Texas Intermediate crude (WTI) futures gained $1.14, or 1.3%, to settle at $86.69 a barrel, also a 10-month high.
Gold slipped to a one-week low on Tuesday on rising bond yields and a jump in the U.S. dollar as investors sought a hedge against global economic growth concerns.
Spot gold was down 0.6% at $1,926.21 per ounce by 2:33 p.m. EDT (1833 GMT). U.S. gold futures settled 0.7% lower at $1,952.60.