Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Top 5 Things to Know in the Market on Thursday

Published 09/01/2016, 05:54 AM
Updated 09/01/2016, 05:54 AM
© Reuters.  Top 5 Things to Know in the Market on Thursday

© Reuters. Top 5 Things to Know in the Market on Thursday

Investing.com - Here are the top five things you need to know in financial markets on Thursday, September 1:

1. All eyes on U.S. data as markets await Fed rate hike clues

Investors looked ahead to data on U.S. nonfarm payrolls on Friday to see if the economy is strong enough to withstand a rate hike in the coming weeks. The consensus forecast is that the data will show jobs growth of 180,000 in August, following an increase of 255,000 in the preceding month.

A strong nonfarm payrolls report would reinforce the view that a U.S. rate hike in September may be on the cards, after hawkish signals from senior Fed officials in recent days revived speculation of a near-term rate hike.

Ahead of the nonfarm employment data, markets will digest reports on initial jobless claims and nonfarm productivity, both due at 8:30AM ET (12:30GMT) on Thursday. There is also Markit manufacturing PMI data at 9:45AM ET (13:45GMT) and ISM manufacturing at 10:00AM ET (14:00GMT), as well as a report on construction spending.

According to Investing.com's Fed Rate Monitor Tool, investors are pricing in a 27% chance of a rate hike by September. December odds were at around 59%.

2. China factory activity improves to 22-month high

Official PMI data released earlier Thursday showed activity in China's manufacturing sector unexpectedly expanded at its fastest pace in nearly two years in August.

The country's purchasing managers’ index rose to 50.4, the highest in 22 months and indicating a slight expansion in the economy. That was up from 49.9 in July.

However, a separate private survey of small-to-medium sized companies revealed operating conditions in the sector stagnated. The Caixin manufacturing PMI slipped to 50.0, the no-change mark which separates expansion from contraction, from 50.6 in July.

3. Pound soars after strong post-Brexit U.K. manufacturing data

The British pound jumped against the dollar to trade near a one-month high after the release of upbeat U.K. manufacturing activity data added to optimism over the strength of the economy post-Brexit.

Research group Markit said its U.K. manufacturing purchasing managers’ index improved to a 10-month high of 53.3 this month from a reading of 48.2 in July. Analysts had expected the index to rise to 49.0 in August.

GBP/USD touched a daily peak of 1.3266, before falling back to 1.3240, up 0.75% on the day.

4. Oil prices slump to new 3-week lows

Oil prices fell to a new three-low for the second day in a row on Thursday, as data from the U.S. Energy Information Administration rekindled fears of a global supply glut.

U.S. crude was down 13 cents, or 0.29%, to $44.57 a barrel during morning hours in New York, while Brent shed 22 cents, or 0.47%, to $46.67, the weakest since August 12.

On Wednesday, oil plunged more than 3% after weekly supply data showed a surprisingly large build in U.S. crude and distillate stockpiles and a smaller-than-expected drawdown in gasoline.

5. Gold drops to lowest since mid-June

Gold prices traded at the lowest level since mid-June on Thursday, amid indications that the Federal Reserve is gearing up to hike interest rates at its September meeting.

Futures held around the $1,310-level after briefly falling to $1,307, a level not seen since June 24.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.