Posted at 01 March 2023 / Categories Market Roundups
Market Roundup
•U.S. manufacturing activity contracts for 4th straight month
•Canada Feb Manufacturing PMI 52.4,51.0 previous
•US Feb Manufacturing PMI 47.3, 47.8 forecast,46.9 previous
•US Jan Construction Spending (MoM) -0.1%,0.2% forecast,-0.4% previous
•US Feb ISM Manufacturing PMI 47.7, 48.0 forecast, 47.4 previous
•US Feb ISM Manufacturing Employment 49.1,50.6 previous
•US Feb ISM Manufacturing New Orders Index 47.0, 42.5 previous
•US Cushing Crude Oil Inventories 0.307M , 0.700M previous
•US Crude Oil Inventories1.165M, 0.457M forecast,7.648M previous
•US Gasoline Inventories-0.874M,0.464M forecast,-1.856M previous
Looking Ahead Economic Data(GMT)
•23:30 Japan Capital Spending (YoY) (Q4) 6.9% forecast, 9.8% previous
•23:30 Japan Foreign Bonds Buying 2,693.3B previous
•00:30 Australia Jan Building Approvals (MoM) -8.0% forecast, 18.5% previous
•00:30 Australia Jan Private House Approvals -2.3% previous
•03:35 Japan 10-Year JGB Auction 0.485% previous
•05:00 Japan Feb Household Confidence 32.0 forecast, 31.0 previous
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Currency Summaries
EUR/USD: The euro gained against the dollar on Wednesday after data showed German inflation soared last month and raised rate hike expectations in the euro zone. German consumer prices, harmonised to compare with other European Union countries, rose more than anticipated in February, pointing to no let-up in stubborn cost pressures and pushing up European Central Bank rate hike expectations.EU-harmonised prices rose by 9.3% compared with the same month a year before, preliminary data from the federal statistics office showed on Wednesday. The euro was last up 0.9% against the dollar to $1.0669 , on track for its biggest daily gain since Feb. 1.Immediate resistance can be seen at 1.0675 (14DMA), an upside break can trigger rise towards 1.0796 (23.6%fib ).On the downside, immediate support is seen at 1.0570 (38.2%fib), a break below could take the pair towards 1.0501(Lower BB).
GBP/USD: Sterling initially gained against a weaker dollar on Wednesday but trimming gains after Bank of England Governor Andrew Bailey said nothing had been decided in terms of whether interest rates would need to rise again. Bailey cautioned against the idea that either the central bank has finished raising rates, or that it will inevitably need to do more.His comments prompted traders to slightly trim their bets on the likelihood of a 25 bps rate increase when the BoE meets on March 23 for its next policy meeting. The pound was 0.1% higher against the dollar at $1.2026. Immediate resistance can be seen at 1.2155(23.6%fib), an upside break can trigger rise towards 1.2258(Higher BB).On the downside, immediate support is seen at 1.2037(9DMA), a break below could take the pair towards 1.1975 (38.2%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Wednesday, recovering from an earlier five-day low, as China’s manufacturing purchasing managers’ index (PMI) rose to its highest level in more than a decade, boosting commodity prices. Canadian manufacturing activity also expanded at a faster pace in February. The S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) rose to a seasonally adjusted 52.4 in February from 51.0 in January, posting its highest level since July.The loonie was trading 0.3% higher at 1.36 to the U.S. dollar , after touching its weakest intraday level since Friday at 1.3659 .Immediate resistance can be seen at 1.4150 (Daily high), an upside break can trigger rise towards 1.4318 (Higher BB).On the downside, immediate support is seen at 1.4093 (21 DMA), a break below could take the pair towards 1.4003 (9 DMA).
USD/JPY: The dollar declined against yen on Wednesday after China's manufacturing activity expanded at its fastest pace since April 2012.The manufacturing purchasing managers' index (PMI) shot up to 52.6 from 50.1 in January, according to China's National Bureau of Statistics, above the 50-point mark that separates expansion and contraction in activity. The dollar also added to losses after data showed U.S. manufacturing activity contracted for a fourth straight month in February. The ISM's manufacturing PMI edged up to 47.7 last month from 47.4 in January, the first rise in six months.The dollar fell 0.07% against the Japanese yen to 137.04, having spiked close to 5% against the yen in February.Strong resistance can be seen at 138.03(23.6%fib), an upside break can trigger rise towards 138.48(Higher BB).On the downside, immediate support is seen at 135.67 (38.2%fib), a break below could take the pair towards 135.12 (9DMA).
Equities Recap
A fall in the shares of the euro zone's largest bank BNP Paribas weighed on Europe's STOXX 600 on Wednesday, while China-exposed miners and luxury firms limited losses after strong data from the world's second largest economy soothed fears of an economic slowdown.
UK's benchmark FTSE 100 closed up by 0.49 percent, Germany's Dax ended down by 0.39 percent, France’s CAC finished the day down by 0.46 percent.
The S&P 500 and Nasdaq fell for a second straight session on Wednesday as Treasury yields jumped after manufacturing data indicated inflation is likely to remain stubbornly high, while comments from Federal Reserve policymakers supported a hawkish policy stance.
Dow Jones closed up by 0.02%percent, S&P 500 closed down by 0.47% percent, Nasdaq settled down by 0.66 % percent.
Treasuries Recap
U.S. Treasury yields rose on Wednesday on higher interest rate fears, with benchmark 10-year government bond yields hitting 4% and the two-year yield at its highest since 2007.
The benchmark 10-year yield hitting 4% for the first time since November. Two-year yields, which more closely reflect monetary policy expectations, went as high as 4.9% - their highest since 2007.
Commodities Recap
Gold prices gained 1% on Wednesday as strong Chinese economic data dented the dollar and drove some bets for better physical demand from the top bullion consumer, although the risk of rising U.S. interest rates capped gains.
Spot gold was up 0.6% at $1,838.20 per ounce by 02:05 p.m. ET (1906 GMT), rising up to $1,844.5 earlier, their highest in a week.U.S. gold futures settled up 0.5% at $1,845.40.
Oil prices settled up slightly on Wednesday as signs of ample supply, including growing U.S. crude inventories, offset growing hopes for higher demand after a jump in manufacturing in top crude importer China.
Brent crude futures settled up 86 cents, or 1%, to $84.31 a barrel. U.S. West Texas Intermediate crude (WTI) settled up 64 cents, or 0.8%, to $77.69.