The US ISM Manufacturing PMI was released yesterday and surprised the market with its low figure. Instead of the expected 56.4 it was 51.3 which is the slowest rate in 8 months. This brought speculation that the economy is slowing and that Friday’s NFP figure may also disappoint. US stocks tumbled after the report experiencing their biggest losses since June. At the close of trading the S&P 500 lost 2.28% and the Dow Jones lost 2.08%. Asian stocks also plummeted; the Nikkei closed 4.18% lower (a 3 month low) and the Hang Seng closed 2.89% lower. European stocks have followed the negative lead from other markets and opened lower.
WTI traded near a weekly low after the negative ISM data. The price is rising slightly as traders are also apprehensive ahead of inventory data from the API later in the day (9.30 pm GMT). US economic data has recently painted a picture of a slower economy and so oil consumption may be on the downside. Gold increased after the PMI data and immediately gained $15/ounce. The negative data increased demand for safe haven assets as equity markets declined. The price is now ranging but we should still be careful with longer term buying positions in the face of tapering.
Today’s Main Events:
14.00 GMT: USD – Treasury Secretary Lew Speaks – U.S. Treasury Secretary Jack Lew (February 2013) is to speak. He speaks frequently on a broad range of subjects and his speeches are often used to signal policy shifts to the public and to foreign governments.
15.00 GMT: USD – Factory Orders – measures the change in the total value of new purchase orders placed with manufacturers. The report also includes a revision of the Durable Goods Orders data released about a week earlier as well as data new data on non-durable goods orders.
21.45 GMT: NZD – Employment Change – Employment Change measures the change in the number of people employed. Job creation is an important indicator of consumer spending
February 4, 2014 – Daily Market News
Today’s Hot Asset: USD
The US ISM Manufacturing PMI was released yesterday and surprised the market with its low figure. Instead of the expected 56.4 it was 51.3 which is the slowest rate in 8 months. This brought speculation that the economy is slowing and that Friday’s NFP figure may also disappoint. US stocks tumbled after the report experiencing their biggest losses since June. At the close of trading the S&P 500 lost 2.28% and the Dow Jones lost 2.08%. Asian stocks also plummeted; the Nikkei closed 4.18% lower (a 3 month low) and the Hang Seng closed 2.89% lower. European stocks have followed the negative lead from other markets and opened lower.
WTI traded near a weekly low after the negative ISM data. The price is rising slightly as traders are also apprehensive ahead of inventory data from the API later in the day (9.30 pm GMT). US economic data has recently painted a picture of a slower economy and so oil consumption may be on the downside. Gold increased after the PMI data and immediately gained $15/ounce. The negative data increased demand for safe haven assets as equity markets declined. The price is now ranging but we should still be careful with longer term buying positions in the face of tapering.
Today’s Main Events:
14.00 GMT: USD – Treasury Secretary Lew Speaks – U.S. Treasury Secretary Jack Lew (February 2013) is to speak. He speaks frequently on a broad range of subjects and his speeches are often used to signal policy shifts to the public and to foreign governments.
15.00 GMT: USD – Factory Orders – measures the change in the total value of new purchase orders placed with manufacturers. The report also includes a revision of the Durable Goods Orders data released about a week earlier as well as data new data on non-durable goods orders.
21.45 GMT: NZD – Employment Change – Employment Change measures the change in the number of people employed. Job creation is an important indicator of consumer spending
Related Posts: