Markets on Edge

5 September, 2017

With the markets risk appetite dampened after North Korea’s most powerful nuclear test to date, USD and Global equities fell whilst Gold, Yen and Sovereign Bonds all rose. President Trump is supposedly weighing economic sanctions that could target China as a result of Pyongyang’s recent nuclear test on Sunday. Asia Business Daily reported on Tuesday that there is a high chance North Korea will fire an ICBM missile before the Sept. 9 foundation day after the Pyongyang regime started moving such a weapon. The US is calling for further sanctions against the regime whilst the US Ambassador to the UN says Pyongyang is ‘begging for war’. The markets expect more rhetoric to follow.

With the US Labor Day Holiday markets were somewhat lethargic, as expectations grew for hints of economic growth following a plethora of Central Bankers speaking this week. The ECB is scheduled to meet on Thursday, but the markets are not expecting the ECB to tighten economic policy any time soon. They are, however, expecting to hear ECB President Draghi raise concerns over EUR recent strengthening. Several FOMC members are speaking today and, again, the markets will be listening acutely to determine when the US may hike rates.

EURUSD remains little changed overnight, currently trading around 1.1905.

USDJPY has gained based on risk aversion due to Japan being the world’s largest creditor nation. Currently, USDJPY is trading around 109.30.

GBPUSD is also little changed overnight, currently trading around 1.2930.

Gold is trading close to an 11-month high, as markets move to the traditional safe-haven. Currently, Gold is trading around $1,336.50.

WTI has gained slightly overnight to currently trade around $47.75pb.

Markit Economics will be releasing several European Country’s PMI for August:

At 08:15 BST, Spain Services PMI expected 56.8 from the previous 57.6.

At 08:45 BST, Italy Services PMI expected 55.7from the previous 56.3.

At 08:50 BST, France Services PMI expected 55.5 from the previous 55.5.

At 08:55 BST, Germany Services PMI expected 53.4 from the previous 53.4.

At 09:00 BST, Eurozone Services PMI expected 54.9 from the previous 54.9.

At 09:30 BST, United Kingdom Services PMI expected 53.5 from the previous 53.8.

Central Bankers are scheduled to speak:

At 10:10 BST, Phillip Lowe, Governor of the Reserve Bank of Australia is scheduled to speak.

At 13:00 BST, FOMC Member Brainard is scheduled to speak.

At 15:00, the US Census Bureau will release Factory Orders (MoM) for July. The previous strong reading of 3% is not expected to be met with the consensus for this release expected around -3.2%.

At 18:10 BST, FOMC Member Kashkari is scheduled to speak.

At 23:05 BST, FOMC Member Kaplan is scheduled to speak.


Source  
Oil is back in the spotlight1 Jun, 2020  

This week, oil may return to investors' focus, on par with the U.S. labour market. This data promises to shed light on how active the real recovery in consumer...

Americans pass pandemic holiday in parks as death toll nears 10000025 May, 2020  

Americans sunbathed on beaches, fished from boats and strolled on boardwalks this holiday weekend, but the occasional person wearing a mask was...

New U.S. House coronavirus bill contains $3 trillion plus in aid13 May, 2020  

The Democratic-led U.S. House of Representatives unveiled on Tuesday a sweeping new coronavirus bill with more than $3 trillion in assistance to states...


The phantom threat of inflation and fears of the virus second wave12 May, 2020  

Asian indices are losing about 1% on Tuesday morning while futures for European and US indices point to open in the red. This is associated...

UK could start lifting coronavirus lockdown measures7 May, 2020  

Britain now has the highest Covid-19 death toll in Europe, according to the latest official figures, climbing past Italy which, alongside Spain, has been among the...

Scientists Create Antibody That Defeats Coronavirus in Lab5 May, 2020  

Scientists created a monoclonal antibody that can defeat the new coronavirus in the lab, an early but promising step in efforts to find treatments and curb...


Saving more money than ever is destroying the economy4 May, 2020  

The COVID-19 pandemic is hurting many spheres of the economy. To slow the spread of the virus, the government told people to stay at home. Tons of businesses...

US weekly jobless claims hit 3.84 million1 May, 2020  

First-time filings for unemployment insurance hit 3.84 million last week as the wave of economic pain continues, though the worst appears to be in the past, according...

These countries effectively contained the coronavirus28 Apr, 2020  

Countries like Australia, New Zealand and South Korea are among the few which managed to buck the trend and put a lid on the coronavirus outbreak, at least for now...