_edited_edited.png)
Markets Update: Equity markets trade mixed ahead of month-end; Little initial impact seen from China PMI data
Economic Calendar
Global Markets Roundup: 31 Aug 2023
APAC stocks eventually traded mostly negative on Thursday, following a marginally positive handover from Wall Street. The equity bid in the US was underpinned by dovish US economic data, which raised expectations of further monetary policy easing by the Fed.
The Japanese yen (JPY) and Australian dollar (AUD) narrowly outperformed the US dollar (USD), which was caged in a tight range after being dealt another blow by US data yesterday. European equity futures are indicative of a flat open after the Euro Stoxx 50 cash index closed -0.3% on Tuesday.
Chinese manufacturing PMI topped expectations but remained sub-50, while non-manufacturing PMI deteriorated slightly since July. The US reportedly restricted the export of some AMD and Nvidia chips to the Middle East amid China fears.
Commodities
Crude oil futures were flat after the prior day's choppiness. Traders were juggling updates from Hurricane Idalia, a larger-than-expected EIA crude stocks draw, and the situation in OPEC-nation Gabon.
The EIA reported a crude oil inventory draw of 4.8 million barrels for the week ending August 26, larger than the 3.9 million-barrel decline expected by analysts. However, the draw was shallower than the 6.5 million-barrel draw reported by private inventories on Tuesday.
Hurricane Idalia, which has been upgraded to a category 2 hurricane, is forecast to make landfall in Florida on Thursday. The storm is expected to disrupt oil and gas production and transportation in the Gulf of Mexico.
The African Chamber said in a statement that tensions are mounting in Gabon, an OPEC member, and that there are concerns that oil and gas activities could be halted.
Spot gold was flat under USD 1,950 per ounce as prices were weighed down by the strong US dollar.
Copper futures tilted higher as Chinese manufacturing PMI improved more than expected but remained in contraction territory. The Caixin manufacturing PMI rose to 49.6 in August from 49.2 in July, while the official PMI rose to 50.1 from 49.6. However, both readings remained below the 50 level that separates contraction from expansion.
Looking ahead the main economic releases for the day include:
German retail sales
Unemployment rate
Eurozone flash CPI
Unemployment rate
US PCE price index (July)
Initial jobless claims
Challenger job cuts
Speeches from Fed's Bostic, Collins, ECB's de Guindos, Schnabel, BoE's Pill.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
Comments