InvestMacro

By JustForex

Despite the fact that the Federal Reserve officials reiterated the need to tighten monetary policy to curb inflation, US indices were trading in positive territory on Wednesday. The technology sector, which has been under pressure in recent days, was also supported by lower Treasury yields. At the close of the stock market yesterday, the Dow Jones Index (US30) increased by 1.40% and the S&P 500 Index (US500) added 1.83%. The NASDAQ Technology Index (US100) jumped by 2.14% on Wednesday.

Fed Vice President Lael Brainard said Wednesday that monetary policy should be restrictive for some time, adding that the central bank would need to see several months of low inflation figures to see if inflation is slowing.

Shares of Apple Inc. rose modestly after the introduction of a slew of new products, including the iPhone 14, the iPhone 14+, the top models of the iPhone 14 Pro, and the larger iPhone 14 Max. Analysts say Apple’s new phone will cause a strong update cycle, as many iPhone buyers haven’t updated their phones in years.

Meanwhile, Twitter shares added more than 5% after a Delaware court rejected Elon Musk’s request to delay a lawsuit that Twitter had launched to prevent the billionaire from backing out of a deal to buy the social network.

The Bank of Canada held its fourth consecutive interest rate hike in an effort to lower inflation from a four-year high. Policymakers led by Governor Tiff Macklem raised the benchmark overnight rate by 75 basis points to 3.25% on Wednesday, giving Canada’s Central Bank the highest interest rate among major advanced economies.

Equity markets in Europe traded flat yesterday. German DAX (DE30) gained 0.53%, French CAC 40 (FR40) added 0.02%, Spanish IBEX 35 (ES35) increased by 0.17%, British FTSE 100 (UK100) closed on Tuesday down 0.86%.

The ECB will hold its monetary policy meeting today, where analysts expect to see an excessive interest rate hike of 0.75%. Taking into consideration yesterday’s EUR strengthening, there is a good reason to believe that investors are already buying European currency in the expectation that the ECB will hold an uncharacteristic aggressive rate hike. But according to analysts, irrespective of the euro reaction direction on Thursday, there is a high probability that the effect on the currency rate will be temporary. This is because EUR/USD has been reacting weakly to ECB rate expectations lately, as the energy crisis continues to shape the dynamics of the pair.

According to analysts, the energy crisis in Europe will only worsen this winter as rising fuel prices reduce consumer demand and force factories to cut production or close, which is a very bad scenario for Europe.

Oil prices fell by 5% yesterday. Analysts see the following reasons for the drop in oil prices in recent days: the twenty-year high of the dollar, which increased the cost of buying crude oil for other currencies; growing quarantine measures in China; concerns about the third consecutive 75 basis point increase in rates by the US Federal Reserve at a meeting on September 21; G7 efforts to limit Russia’s selling price of oil in order to deprive Moscow of the maximum revenue it seeks from energy exports to finance its war against Ukraine; the finish line in negotiations over the Iran nuclear deal, which could potentially return hundreds of thousands of barrels of Iranian oil to the world market.

“There are fears that an angry Putin will stop all oil and gas supplies to Europe to teach the West and the world a lesson for trying to unite against Mother Russia,” said John Kilduff, a partner at the New York-based energy hedge fund Again Capital.

Gas prices in Europe decreased by 14%. Gas prices are down amid reports that European gas storage facilities are filling ahead of schedule.

Asian markets were trading lower yesterday. Japan’s Nikkei 225 (JP225) decreased by 0.71% yesterday, Hong Kong’s Hang Seng (HK50) lost 0.83%, and Australia’s S&P/ASX 200 (AU200) was 1.42% lower by the end of the day.

The Japanese currency keeps losing ground, and the reason for that is not only the interest rate differences between the Bank of Japan and other central banks. Another problem for the yen is the change in the trade balance. The country used to have a constant trade surplus, but with energy prices skyrocketing and Japan importing most of its energy from abroad, it is facing a trade deficit. Combined with the ban on tourists visiting the island, demand for the yen dropped sharply.

Australia’s index fell at the opening market on Thursday after data showed the country’s trade balance contracted more than expected in July.

S&P 500 (F) (US500)  3,979.87 +71.68 (+1.83%)

Dow Jones (US30) 31,581.28  +435.98 (+1.40%)

DAX (DE40) 12,871.44 12,915.97 (+0.35%)

FTSE 100 (UK100)  7,237.83 −62.61 (−0.86%)

USD Index 109.55 −0.66 (−0.60%)

• – Japan GDP (q/q) at 02:50 (GMT+3);
• – Australia RBA Governor Lowe Speaks at 06:05 (GMT+3);
• – Switzerland Unemployment Rate (m/m) at 08:45 (GMT+3);
• – Eurozone Marginal Lending Facility (m/m) at 15:15 (GMT+3);
• – Eurozone ECB Monetary Policy Statement (m/m) at 15:15 (GMT+3);
• – Eurozone ECB Interest Rate Decision (m/m) at 15:15 (GMT+3);
• – US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
• – Eurozone ECB Press Conference at 15:45 (GMT+3);
• – US Fed Chair Powell Speaks at 16:10 (GMT+3);
• – Eurozone ECB President Lagarde Speaks at 17:15 (GMT+3);
• – US Natural Gas Storage (w/w) at 17:30 (GMT+3);
• – US Crude Oil Reserves (w/w) at 18:00 (GMT+3).

By JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

By JustForex

The US service sector PMI Index rose to a four-month high on higher demand. The index of business activity and new orders rose to the highest levels in a year, reflecting both continued changes in purchasing habits and solid wage growth. The dollar index and Treasury yields increased sharply amid the data, with the 10-year Treasury yields rising to a new three-month high. At the close of the stock market yesterday, the Dow Jones Index (US30) decreased by 0.54%, and the S&P 500 Index (US500) fell by 0.40%. The NASDAQ Technology Index (US100) lost 0.74% on Tuesday.

According to the latest PMI survey, global manufacturing declined in August for the first time since June 2020. The decline, while very modest, reflects an increasingly widespread deterioration in manufacturing and demand conditions across both sectors and regions. Companies are also taking a more cautious approach to controlling costs and employment as the economic climate worsens. CentralBbanks are raising interest rates amid an economic slowdown that, while bearing fruit in terms of lower inflation, increases the risk of a deepening global downturn and possible recession.

The White House confirmed that the United States will not list Russia as a sponsor of terrorism. This is the final decision.

Equity markets in Europe traded without a single dynamic yesterday. German DAX (DE30) gained 0.87%, French CAC 40 (FR40) added 0.19%, Spanish IBEX 35 (ES35) was 0.26% lower, British FTSE 100 (UK100) closed on Tuesday with a 0.18% gain.

The new British Prime Minister Liz Truss outlined her top three priorities: growing the economy by cutting taxes, taking action on energy bills, and strengthening the NHS (National Health Service).

German energy giant Uniper warned Tuesday that the worst is yet to come for Europe, as worries about Russian gas supplies to Europe in the fall and winter continue to drive up prices.

The EU is pushing for national taxes on energy companies’ inflated profits to counter what European Commission President Ursula von der Leyen called “astronomical” energy bills. The planned taxes, to be discussed by EU energy ministers on Friday, would target both fossil fuel producers and low-carbon energy companies that have made super profits thanks to artificially inflated electricity prices.

The European Commission approved a proposal to suspend the visa facilitation agreement with Russia completely as of September 12.

According to the IEA, global coal consumption will rise to a record high in the near future, even though coal remains the dirtiest fuel of all the major fossil fuels. Already, global coal prices are trading at unusually high levels.

Asian markets traded flat yesterday. Japan’s Nikkei 225 (JP225) gained 0.03% yesterday, Hong Kong’s Hang Seng (HK50) ended yesterday down 0.12%, and Australia’s S&P/ASX 200 (AU200) fell by 0.38% yesterday.

Australia’s annual GDP at the end of July was 3.6% instead of the expected 3.4%. Quarterly GDP grew by 0.9% from the previous value of +0.8%. Australian stock index ASX 200 gained slightly on this news.

China’s trade balance for August was 535.91 billion yuan, compared to the expected 504.85 billion yuan, and 682.69 billion yuan last year. Exports jumped by 11.8% last month against an expected 15.7%. The country’s imports grew by 4.6% against the expected 8.7%. Markets treated the data as negative as exports and imports missed the expectations.

S&P 500 (F) (US500) 3,908.55 −15.71 (−0.40%)

Dow Jones (US30) 31,148.07 −170.37 (−0.54%)

DAX (DE40) 12,871.44 +110.66 (+0.87%)

FTSE 100 (UK100) 7,300.443 +13.01 (+0.18%)

USD Index 110.243 +0.71 (+0.64%)

• – Australia GDP (q/q) at 04:30 (GMT+3);
• – German Industrial Production (m/m) at 09:00 (GMT+3);
• – UK BoE Monetary Policy Report (m/m) at 12:00 (GMT+3);
• – UK BoE Gov Bailey Speaks (m/m) at 12:00 (GMT+3);
• – Eurozone GDP (q/q) at 12:00 (GMT+3);
• – Canada BoC Interest Rate Decision (m/m) at 17:00 (GMT+3);
• – Canada BoC Rate Statement (m/m) at 17:00 (GMT+3);
• – Canada Ivey PMI (m/m) at 17:00 (GMT+3);
• – US FOMC Member Mester Speaks (m/m) at 17:00 (GMT+3);
• – US FOMC Member Brainard Speaks (m/m) at 19:35 (GMT+3).

By JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

By JustForex

The US stock indices did not trade yesterday due to the banking holiday in the United States.

Equity markets in Europe were mostly down yesterday. German DAX (DE30) decreased by 2.22%, French CAC 40 (FR40) was 1.20% lower, Spanish IBEX 35 (ES35) lost 0.88%, British FTSE 100 (UK100) added 0.09% on Monday.

Germany’s trade surplus narrowed to 5.4 billion euros ($5.4 billion) from 6.2 billion euros in June as exports fell by 2.1% and imports fell by 1.5%, the statistics office said. Germany plans to completely stop gas supplies from Russia in December 2022. The German chancellor believes that Russia cannot be considered a reliable energy supplier because it has long violated its contractual obligations. The leaders of Germany’s government coalition parties agreed on a third $65 billion bailout package for citizens due to high energy prices.

The Eurozone Services PMI Index fell from 50.2 to 49.8. A value below 50 is seen as a pre-recession indicator. The biggest drop of the leading economies was observed in Spain (53.8→50.6) and Germany (48.2→47.7). France (51.0→51.2) and Italy (48.4→50.5) showed an increase in business activity.

Liz Truss won a majority of votes in the second round and became the third female prime minister of Great Britain. She will officially take office on Tuesday after Johnson submitted his resignation petition to Queen Elizabeth II. Investors are now watching to see what steps the new UK government will take to reduce the negative effects of rising prices and energy bills. Truss has promised a “bold plan” for tax cuts and an energy crisis

The European Union may introduce a “price ceiling” on Russian gas, European Commission head Ursula von der Leyen said. The Council of Europe will soon come up with this initiative.

According to the results of the first half of 2022,China has become one of the largest buyers of Russian gas. LNG shipments from Russia to China increased by 63%, exceeding Chinese domestic demand.

The meeting of OPEC and non-OPEC countries noted the negative impact of volatility and declining liquidity on the current oil market and the need to maintain market stability and its effective functioning. Following yesterday’s meeting of OPEC+ countries, the main oil-producing countries agreed to cut production by 100 thousand barrels per day starting from October. This may give a temporary bullish momentum to oil quotes.

Asian markets traded flat yesterday. Japan’s Nikkei 225 (JP225) decreased by 0.11% yesterday, Hong Kong’s Hang Seng (HK50) was down 1.16%, and Australia’s S&P/ASX 200 (AU200) added 0.34% by the end of the day.

The People’s Bank of China cut the required reserve ratio of foreign currency deposits that banks must keep with the Сentral Bank. Theoretically, this should stop the trend of the yuan weakening.

The Reserve Bank of Australia raised its interest rate by 50 basis points to 2.35%. The RBA predicts inflation will continue to rise in the coming months, peaking at the end of the year. The RBA predicts inflation will be around 7.75% in 2022, just above 4% in 2023, and around 3% in 2024

S&P 500 (F) (US500) 3,924.26 −42.59 (−1.07%)

Dow Jones (US30) 31,318.44 −337.98 (−1.07%)

DAX (DE40) 12,760.78 −289.49 (−2.22%)

FTSE 100 (UK100) 7,287.43 +6.24 (+0.09%)

USD Index 109.83 +0.30 (+0.27%)

• – Australia RBA Interest Rate Decision (m/m) at 07:30 (GMT+3);
• – Australia RBA Rate Statement (m/m) at 07:30 (GMT+3);
• – UK Construction PMI (m/m) at 11:30 (GMT+3);
• – US ISM Service PMI (m/m) at 17:00 (GMT+3).

By JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

By ForexTime

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

By JustForex

The US stock indices ended the week lower on Friday, as early gains amid a report on Nonfarm Payrolls were overshadowed by worries about the energy crisis in Europe. The US economy added 315,000 jobs in August, still a solid indicator showing that the economy remains resilient despite rising interest rates, high inflation, and sluggish consumer spending. Friday’s government report also showed that the unemployment rate rose to 3.7% from a low of 3.5%. Analysts believe the decline in US job gains in August may help the Fed’s fight against inflation. At the close of trading on Friday the Dow Jones index (US30) decreased by 1.07% (-2.70% for the week) and the S& P 500 (US500) lost 1.07% (-2.73% for the week). The Technology Sector Index NASDAQ (US100) fell by 0.31% (-1.06% for the week).

Equity markets in Europe were mostly up on Friday. German DAX (DE30) gained 3.33% (+1.65% for the week), French CAC 40 (FR40) jumped by 2.21% (-0.51% for the week), Spanish IBEX 35 (ES35) added 1.62% (-0.48% for the week) and British FTSE 100 (UK100) closed the day up 1.86% (-2.65% for the week).

The UK lagged behind India to become the world’s sixth-largest economy, dealing another blow to the government in London, which has been struggling with a steep drop in the cost of living. Britain’s fall in the international rankings is not a pleasant backdrop for the new prime minister. British Foreign Secretary Liz Truss said Sunday that she would take immediate action in her first week in office to address rising energy bills and increased energy supplies if appointed prime minister. Truss said she would bravely fight the falling economy, repeating her promise to stimulate growth to fix a long list of problems. The Sunday Times newspaper, citing insiders at the Treasury Department, said the cost of Truss’ plan would easily exceed 100 billion pounds ($115 billion), most of which would be added to government borrowing. The winner with the most Conservative votes will be announced on Monday, and the next day the new prime minister will meet with Queen Elizabeth and ask her to form a government.

Oil prices declined over the summer amid uncertainty about demand prospects due to China’s COVID-19 restraint and as central banks around the world raised interest rates to combat rising inflation, affecting the global economic outlook. The Organization of Petroleum Exporting Countries and its allies, including Russia, are scheduled to meet Monday. Energy traders will be paying close attention to the event, especially after Saudi Arabia raised the possibility of production cuts. OPEC+ last week revised its market balances for this year and now sees demand lagging supply by 400,000 BPD versus the 900,000 BPD previously projected. The producer group expects a market deficit of 300,000 BPD in the baseline scenario for 2023.

This week, the escalating energy dispute between Russia and the West will draw investors’ attention. Moscow has closed its main gas pipeline to Germany for an indefinite period. The closure of the Nord Stream pipeline, which Russia says will last as long as it takes to make repairs, has exacerbated fears of a winter gas shortage that could lead to a recession in major economies and lead to energy rationing. Europe accused Russia of using energy as a weapon in what Moscow called an “economic war” with the West following Russia’s invasion of Ukraine. Moscow blamed Western sanctions and technical problems for supply disruptions.

Asian markets traded lower last week. Japan’s Nikkei 225 (JP225) decreased by 1.81% for the week, Hong Kong’s Hang Seng (HK50) was down by 2.55% for the week, and Australia’s S& P/ASX 200 (AU200) closed down by 3.88% for the week.

In the commodities market, orange juice futures showed the largest rise in price by the end of the week (+5.44%). Futures on gasoline (-13.73%), cotton (-12.3%), copper (-8.01%), Brent oil (-7.63%), WTI oil (-6.24%), palladium (-4.71%), lumber (-4.65%), silver (-4.46%), coffee (-4.14%), natural gas (-3.96%), and soybeans (-2.84%) showed the biggest drop.

S&P 500 (F) (US500) 3,924.26 −42.59 (−1.07%)

Dow Jones (US30) 31,318.44 −337.98 (−1.07%)

DAX (DE40) 13,050.27 +420.0 (+3.33%)

FTSE 100 (UK100) 7,281.19 +132.69 (+1.86%)

USD Index 109.61 -0.08 (-0.07%)

• – Japan Service PMI (m/m) at 03:30 (GMT+3);
• – Australia Retail Sales (m/m) at 04:30 (GMT+3);
• – Switzerland GDP (q/q) at 10:00 (GMT+3);
• – Spanish Service PMI (m/m) at 10:15 (GMT+3);
• – Italian Service PMI (m/m) at 10:45 (GMT+3);
• – French Service PMI (m/m) at 10:50 (GMT+3);
• – German Service PMI (m/m) at 10:55 (GMT+3);
• – Eurozone Service PMI (m/m) at 11:00 (GMT+3);
• – UK Service PMI (m/m) at 11:30 (GMT+3);
• – Eurozone Retail Sales (m/m) at 12:00 (GMT+3);
• – OPEC+ Meeting (m/m) at 13:00 (GMT+3).

By JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

By JustForex

At the close of the US stock market yesterday, the Dow Jones index (US30) added 0.46%. The S&P 500 Index (US500) increased by 0.30%. The NASDAQ Technology Index (US100) lost 0.26%

The ISM Manufacturing Index was 52.8 in August, unchanged from July and beating the consensus forecast of 51.9. Expectations for a third straight 75 basis point rate hike in the US at the Fed’s September 20-21 meeting are rising on solid economic data, with Fed funds futures indicating a 77.1% chance of such an increase. Market attention now turns to the August US Nonfarm Payrolls report, which will be one of the key reports ahead of the Fed meeting. Although the US economy contracted in the first half of the year, the robust labor market defies talk of a recession and encourages the Federal Reserve to keep raising rates.

According to Swiss investment bank UBS, the likelihood of a recession in the US economy over the next year has risen to 60%. Earlier the probability of recession was 40%. Such a forecast was given by the bank based on 3 recession indicators monitored: macroeconomic data, the U.S. Treasury bond yield curve, and credit data.

European stock indices started September weak, falling to a seven-week low amid growing concerns over slowing economic growth, aggressive interest rate hikes, and record-high inflation. German DAX (DE30) fell yesterday by 1.60%, French CAC 40 (FR40) was down by 1.48%, Spanish IBEX 35 (ES35) lost 1.02%, British FTSE 100 (UK100) closed 1.05% lower. Manufacturing activity in the Eurozone declined slightly over the last month, but the decline was mainly due to a sharp drop in activity in Italy. In Germany, France, and Spain manufacturing activity rose in August, but figures are near the median level of 50. German retail sales rose unexpectedly in July, up 1.9% from the previous month, as online retailing and the food sector showed a recovery. Markets are estimating a roughly 80% chance of a 75 basis point rate hike by the European Central Bank next week, up from just over a 50% chance a day earlier.

New lockdowns in China, triggered by COVID-19 concerns, extended the sell-off in oil for a third straight day, increasing the probability that US crude may fall below $85 a barrel for the first time since late January. OPEC+ countries will meet on September 5. If OPEC+ does not announce any cuts at that time, oil prices could continue to fall due to concerns about seasonally weak demand in the fall. Adding to the uncertainty is the resurgence of the US-Iran nuclear deal, which Iran is very much seeking, and Israel strongly opposes. At stake is the potential lifting of US sanctions on Iranian oil, which could add up to a million barrels per day to the global crude oil export market.

Asian markets traded lower yesterday. Japan’s Nikkei 225 (JP225) was down by 1.53%, Hong Kong’s Hang Seng (HK50) ended the day down by 1.79%, and Australia’s S&P/ASX 200 (AU200) closed at 2.02%.

South China’s Shenzhen technology center tightened restrictions against COVID-19, as the number of cases continues to rise. Large events and indoor entertainment have been suspended for three days. Manufacturing activity in Asia plummeted in August, as China’s COVID-19 restrictions and cost pressures continue to hurt business.

S&P 500 (F) (US500) 3,966.85 −31.16 (−0.30%)

Dow Jones (US30) 31,656.42 +145.99 (−0.46%)

DAX (DE40) 12,630.23 -204.73 (−1.60%)

FTSE 100 (UK100) 7,148.50 −135.65 (−1.86%)

USD Index 109.63 +0.93 (+0.86%)

• – Switzerland Unemployment Rate (m/m) at 09:30 (GMT+3);
• – Eurozone Producer Price Index (m/m) at 12:00 (GMT+3);
• – US Nonfarm Payrolls (m/m) at 15:30 (GMT+3);
• – US Unemployment Rate (m/m) at 15:30 (GMT+3).

By JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

By ForexTime

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

By JustForex

At the close of the US stock exchange yesterday, the Dow Jones Index (US30) fell by 0.88% (monthly result-3.93%). S&P 500 Index (US500) lost 0.78%(-3.97% for the month). The NASDAQ Technology Index (US100) was down by 0.12% (monthly result-0.15%). Cleveland Federal Reserve President Loretta Mester said Wednesday that the Fed would need to raise the federal funds rate to just above 4% by early next year and hold it at that level for a while.

The jobs data from the Labor Department will be released on Friday. It is expected to show that the nonfarm payrolls report will show an increase of 300,000 as July saw an increase of 528,000. Another strong report is likely to further reinforce expectations that the Fed will continue its excessive rate hikes after three consecutive 75 basis point hikes.

Canadian GDP for the second quarter showed that the economy grew by 3.3% annually versus an expected 4.4%. The inflation component was also 3.3% versus expected 3.1%.

European stocks were mostly down on Wednesday. German DAX (DE30) fell yesterday by 0.97% (monthly result – 4.78%), French CAC 40 (FR40) lost 1.37% (monthly result- 4.84%), Spanish IBEX 35 (ES35) lost 1.17% (monthly result -2.46%), British FTSE 100 (UK100) closed the day with negative 1.05% (monthly result -1.74%).

Inflation in the Eurozone reached  9.1% annually (the forecast was9.0%, the previous month -8.9%). In Italy, inflation hit a 37-year high of 8.4%. Consumer prices continue to rise due to a surge in energy prices. In contrast to the US, Europe has not yet been able to cope with this problem. As a result, ECB policymakers have started talking about a possible ECB rate hike of 0.75% at the September 8 meeting. Nevertheless, after August’s inflation data came as no surprise, the ECB may opt for another 50 basis point increase

According to Fitch Ratings, global inflation continued to rise in the second quarter of 2022, even though the quarter began at already significantly higher interest rates. The monthly data shows that the pressure continues to intensify in the third quarter of 2022.

In the second quarter of 2022, France’s GDP grew by 0.5% QoQ after negative 0.2% in the first quarter of 2022.

Britons are preparing for a recession, and consumers are doing everything they can to save money. With rising inflationary pressures, businesses will undoubtedly also tightly control spending and profit margins where possible., Thus,a wave of layoffs and rising unemployment may also join the energy crisis. But there is one positive factor – the cost-of-living crisis and the rising cost of credit have put the brakes on British house prices as the demand has fallen sharply.

“I don’t remember 1943 German tourists traveling, for example to Britain or other countries of the world for leisure purposes,” Polish Prime Minister Mateusz Morawiecki said yesterday. The EU countries are actively discussing the closure of tourist visas for Russians.

Also, yesterday the EU decided not to recognize Russian passports issued in the seized Ukrainian territories.

Oil prices continued to fall on Wednesday amid investor fears that the global economy may slow down further due to renewed restrictions in China. There are fears that demand will collapse as interest rates rise and inflation fears engulf global economies. The Joint Technical Committee of the Organization of the Petroleum Exporting Countries (OPEC) and allies, collectively called OPEC+, said it now sees a surplus of 900,000 BPD of oil this year, 100,000 BPD more than predicted a month earlier. Some OPEC+ members are calling for production cuts to stop oil prices from falling. The group’s next meeting is on September 5.

Asian markets traded flat yesterday. Japan’s Nikkei 225 (JP225) was down by 0.34% (-0.65% for the month), Hong Kong’s Hang Seng (HK50) was up 0.03% (-1.05% for the month), and Australia’s S&P/ASX 200 (AU200) closed at 0.16% (-1.97% for the month).

S&P 500 (F) (US500) 3,955.00 −31.16 (−0.78%)

Dow Jones (US30) 31,510.43 −280.44 (−0.88%)

DAX (DE40) 12,834.96 +126.18 (+0.97%)

FTSE 100 (UK100) 7,284.15−77.48 (−1.05%)

USD Index 108.69 −0.09 (−0.08%)

• – Japan Manufacturing PMI (m/m) at 03:30 (GMT+3);
• – China Caixin Manufacturing PMI (m/m) at 04:45 (GMT+3);
• – German Retail Sales (m/m) at 09:00 (GMT+3);
• – Switzerland Retail Sales (m/m) at 09:30 (GMT+3);
• – Switzerland Consumer Price Index (m/m) at 09:30 (GMT+3);
• – Spanish Manufacturing PMI (m/m) at 10:15 (GMT+3);
• – Italian Manufacturing PMI (m/m) at 10:45 (GMT+3);
• – French Manufacturing PMI (m/m) at 10:50 (GMT+3);
• – German Manufacturing PMI (m/m) at 10:55 (GMT+3);
• – Eurozone Manufacturing PMI (m/m) at 11:30 (GMT+3);
• – UK Manufacturing PMI (m/m) at 11:30 (GMT+3);
• – Eurozone Unemployment Rate (m/m) at 12:00 (GMT+3);
• – Canada Building Permits (m/m) at  5:30 (GMT+3);
• – Canada Manufacturing PMI (m/m) at 16:45 (GMT+3);
• – US ISM Manufacturing PMI (m/m) at 17:00 (GMT+3);
• – US ISM Manufacturing PMI (m/m) at 17:00 (GMT+3);

– US Natural Gas Storage (w/w) at 17:30 (GMT+3).

By JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

By JustForex

Major Wall Street indices fell on Tuesday as a surge in US job openings pointed to a strong labor market, adding to concerns about the Federal Reserve’s aggressive approach to lowering inflation. At the stock market’s close, the Dow Jones Index (US30) decreased by 0.96%, and the S&P 500 (US500) fell by 1.10%. The NASDAQ Technology Index (US100) was down by 1.12% yesterday. Traders raised their rates for the third straight 75 basis point increase in September to 76.5% from 70%. All investors are now focused on the Nonfarm Payroll data for August, which will be released on Friday.

European stocks were mostly down on Tuesday. German DAX (DE30) gained 0.53% yesterday, French CAC 40 (FR40) decreased by 0.19%, Spanish IBEX 35 (ES35) lost 0.12%, British FTSE 100 (UK100) was by 0.88% lower.

Inflation in Germany in August rose to 7.9% in annual terms, returning to the historical maximum recorded in May, which is the highest level in almost 50 years. Judging by the regional components of inflation, the biggest contributors to the rise in consumer prices come from rising gas and electricity prices, food prices, and higher prices for vacation tours. For the ECB, an increase in overall inflation in Germany will further fuel an internal debate about a more aggressive interest rate hike at the next meeting.

Carrefour’s CEO said French consumers are abandoning fish, buying cheaper meat, and rejecting organic products to save money on purchases. All the fault of high inflation, forcing consumers to save on food. Inflation has risen to record levels in major economies over the past year because of tight supply chains after COVID-19 and, more recently, soaring energy prices after Russia invaded Ukraine in February. France has shifted the cost of high inflation off consumers more aggressively than other eurozone countries, curbing gas and electricity prices and boosting revenues by raising wages for civil servants and pensioners, as well as through subsidies for the poor.

In Switzerland, the KOF economic barometer fell by 4.0 points in August and now stands at 86.5. This is well below the long-term average. Accordingly, the outlook for the Swiss economy in the near future seems less encouraging. The decline is primarily due to personal consumption, but negative signals come from the manufacturing and construction sectors.

Germany proposes to suspend the visa facilitation agreement with Russia. The Netherlands favors a complete ban on tourist visas for Russians.

Iran and the United States have reached an agreement on a nuclear deal, and it will be officially announced in the next two to three weeks, a former IAEA official told Iran International. The details of the agreement, as well as the IAEA official’s identity, are unknown, but the news triggered a wave of sales in the oil market. Oil fell by $6 yesterday. Analysts believe that with inflation approaching double-digit territory in many of the world’s biggest economies, that could prompt the US and European central banks to resort to more aggressive interest rate hikes, which could slow economic growth and affect fuel demand. Last week, Saudi Arabia raised the possibility of OPEC+ production cuts, which sources said could coincide with a resumption of supply from Iran if it closes a nuclear deal with the West. With most producers already operating at or above full capacity and signs that the global economy may be slowing, some supply cuts are becoming more likely in the coming months.

Asian markets traded flat yesterday. Japan’s Nikkei 225 (JP225) gained 1.14%, Hong Kong’s Hang Seng (HK50) ended the day down by 0.37%, and Australia’s S&P/ASX 200 (AU200) closed at plus by 0.47%.

The Taiwanese military fired warning shots at a Chinese drone that flew over an island controlled by Taiwan. The situation in the region remains tense.

On Tuesday, August 30, several major Chinese cities tightened restrictions due to a new outbreak of COVID-19. Authorities have redoubled efforts to contain the coronavirus ahead of a key meeting of the ruling Communist Party this year. Nearly 4 million people in Hebei province, which surrounds Beijing, have been ordered to stay home for the rest of the week.

S&P 500 (F) (US500) 3,986.16 −44.45 (−1.10%)

Dow Jones (US30) 31,790.87 −308.12 (−0.96%)

DAX (DE40) 12,961.14 +68.15 (+0.53%)

FTSE 100 (UK100) 7,361.63 −65.68 (−0.88%)

USD Index 108.78 −0.06 (−0.06%)

• – Japan Industrial Production (m/m) at 02:50 (GMT+3);
• – Japan Retail Sales (m/m) at 02:50 (GMT+3);
• – New Zealand ANZ Business Confidence (m/m) at 04:00 (GMT+3);
• – China Manufacturing PMI (m/m) at 04:30 (GMT+3);
• – China Non-Manufacturing PMI (m/m) at 04:30 (GMT+3);
• – French Consumer Price Index (m/m) at 09:45 (GMT+3);
• – French GDP (q/q) at 09:45 (GMT+3);
• – German Unemployment Rate (m/m) at 10:55 (GMT+3);
• – Italian Consumer Price Index (m/m) at 12:00 (GMT+3);
• – Eurozone Consumer Price Index (m/m) at 12:00 (GMT+3);
• – US FOMC Member Mester Speaks at 15:00 (GMT+3);
• – US ADP Non-Farm Employment Change (m/m) at 15:15 (GMT+3);
• – Canada GDP (q/q) at 15:30 (GMT+3);
• – US Chicago PMI (m/m) at 16:45 (GMT+3);
• – US Crude Oil Reserves (w/w) at 17:30 (GMT+3).

By JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.