Market Roundup
• Saudi Arabia to restore full output by next week – source
• UK believes Iran was behind Saudi oil attacks
• US Aug Chicago Fed National Activity 0.10, -0.35 forecasts, -0.41 previous
• Canada Jul Wholesale Sales (MoM) 1.7%,-0.1% forecast 0.7% previous
• Brazil Aug Current Account (USD) -4.27B, -3.96B forecast, -9.04B previous
• Brazil Aug Foreign direct investment (USD) 9.47B, 6.00B forecast, 7.66B previous
• US Sep Manufacturing PMI 51.0, 50.3 forecast, 50.3 previous
• US Sep Markit Composite PMI 51.0, 49.6 forecast, 50.7 previous
• US Sep Services PMI 50.9, 51.3 forecast, 50.7 previous
• Brazil CAGED Net Payroll Jobs 43.82K 43.82K previous
Looking Ahead - Economic Data (GMT)
• 00:30 Japan Sep Manufacturing PMI 49.5 forecast, 49.3 previous
• 00:30 Japan Services PMI 53.3 previous
• 05:00 Japan Leading Index 93.6 forecast, 93.6 previous
Looking Ahead - Events, Other Releases (GMT)
• 0:5:35 BoJ Governor Kuroda Speaks
• 0:9:55 RBA Governor Lowe Speaks
• 14:30 ECB's De Guindos Speaks
Currency Summaries
EUR/USD: The euro edged lower against the U.S. dollar on Monday, after weaker-than-expected German flash purchasing managers' index survey data pressured the euro. Euro zone business growth stalled this month, a survey showed on Monday, dragged down by shrinking activity in powerhouse Germany, where a manufacturing recession deepened unexpectedly. Monday’s downbeat survey results come less than two weeks after the European Central Bank pledged indefinite stimulus to revive the 19-country currency bloc’s ailing economy. The euro was 0.32% lower against the greenback at $1.0982. Immediate resistance can be seen at 1.1068 (Sep 19th high ), an upside break can trigger rise towards 1.11500 (Higher BB ).On the downside, immediate support is seen at 1.0965 (Daily low), a break below could take the pair towards 1.0900 (Psychological level).
GBP/USD: The British held steady against dollar on Monday, as investors looked for signs of progress in Britain’s Brexit talks and awaited a Supreme Court ruling on whether Prime Minister Boris Johnson misled Queen Elizabeth over his reasons for suspending parliament this month.Johnson meets European Union leaders at the U.N. General Assembly in New York. Expectations for progress were low, and the substantial volume of short positions built up on sterling may shield the currency from any sharp declines. The pound was down 0.28% at $1.2435, having dropped earlier to a six-day low of $1.2413, mostly because of dollar strength after a solid composite purchasing managers’ survey.Immediate resistance can be seen at 1.2400 (Psychological level), an upside break can trigger rise towards 1.2587 (Higher BB).On the downside, immediate support is seen at 1.2413 (Daily low), a break below could take the pair towards 1.2330 (20 DMA).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Monday, with the currency clawing back its earlier decline after domestic data showed an unexpected jump in July wholesale trade. Canadian wholesale trade increased by 1.7% in July from June on stronger sales in the personal and household goods subsector, as well as motor vehicles and parts, Statistics Canada said. Analysts had forecast a 0.1% decrease. The Canadian dollar was trading nearly unchanged at 1.3263 to the greenback, or 75.40 U.S. cents. The currency, which rose 0.2% last week, traded in arange of 1.3252 to 1.3305. Immediate resistance can be seen at 1.3300 (Psychological level), an upside break can trigger rise towards 1.3358 (Higher BB).On the downside, immediate support is seen at 1.3250 (5 DMA), a break below could take the pair towards 1.3227 (50 DMA).
USD/JPY: The dollar rose against the Japanese yen on Monday, as dismal manufacturing and services data elevated concerns about the state of the euro zone economy. Euro zone business growth stalled this month, a survey showed on Monday, dragged down by shrinking activity in powerhouse Germany, where a manufacturing recession deepened unexpectedly. Monday’s downbeat survey results come less than two weeks after the European Central Bank pledged indefinite stimulus to revive the 19-country currency bloc’s ailing economy. The dollar index, which measures the greenback against a basket of currencies, was 0.21% higher at 98.718, its highest since Sept. 12. Strong resistance can be seen at 107.91 (100 DMA), an upside break can trigger rise towards 108.00 (Psychological level).On the downside, immediate support is seen at 107.45 (Ichimoku Cloud Top), a break below could take the pair towards 107.06 (50 DMA).
Equities Recap
Euro zone stock markets clocked their worst day in one month on Monday after dismal business activity readings from across the currency bloc deepened fears of a looming recession and suggested more stimulus was required.
The UK's benchmark FTSE 100 closed down by 0.26 percent, FTSEurofirst 300 ended the day down by 0.26 percent, Germany's Dax ended down by 1.01 percent, and France’s CAC finished the down by 1.05 percent.
U.S. stocks were higher in late afternoon trading on Monday, helped by gains in shares of Apple Inc, though mixed economic cues in the face of a prolonged U.S.-China trade war limited the advance.
Dow Jones closed up by 0,06 percent, S&P 500 ended down 0.01 percent, Nasdaq finished the day down by 0.06 percent.
Treasuries Recap
U.S. Treasury yields slid on Monday, in line with the European bond market, as risk appetite faded after softer-than-expected euro zone business activity data fueled recession fears in the region.
In morning trading, U.S. benchmark 10-year note yields fell to 1.678% from 1.753% late on Friday, after hitting a two-week low of 1.677%.
Yields on 30-year bonds were also lower, at 2.126% from 2.198% on Friday, touching a two-week trough of 2.12%.
Commodities Recap
Gold rose to a more than one-week high on Monday as weaker-than-expected economic data from Europe heightened fears of a slowdown in global growth, while palladium continued its record run driven by short supply of the auto-catalyst metal.
Spot gold was up 0.2% at $1,519.13 per ounce as of 1254 GMT, after hitting its highest since Sept. 12.U.S. gold futures rose 0.7% to $1,526.30 an ounce.
Oil stabilized on Monday, after gaining nearly 7% last week, as lingering concerns over global supplies following the Sept. 14 attack on Saudi oil facilities offset prospects for a faster-than-expected restoration of the kingdom’s output and on signs of European economic weakness.
Global benchmark Brent futures were up 1 cent to $64.29 a barrel by 11:30 a.m EDT (1530 GMT), while U.S. West Texas Intermediate (WTI) crude was up 16 cents, or 0.3%, to $58.25.
