Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Market Brief: Treading Water Ahead Of ISM Services PMI

By City Index (Matt Simpson)ForexOct 03, 2019 02:40AM ET
www.investing.com/analysis/market-brief-treading-water-ahead-of-ism-services-pmi-200470162
Market Brief: Treading Water Ahead Of ISM Services PMI
By City Index (Matt Simpson)   |  Oct 03, 2019 02:40AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Daily % Candles
Daily % Candles

FX Brief:

  • Ahead of trade talks, White House advisor Peter Navarro has listed “seven deadly sins” from China; Cyber attacking, IP theft, forced technology transfer, goods trade balance, China state-owned subsidies, FX manipulation and fentanyl shipped to “kill countless Americans”.

    The U.S. are to hit Europe with a 10% tariff on European-made Airbus plan and 25% on French wine, Scotch and Irish Whiskey and continental cheese.

  • Fed Williams (NYSE:WMB) see’s monetary policy as “in the right place”, although the outlook for the economy is mixed. On tariffs he sees risks to the economy as relatively modest.
  • Australian exports fell -3% in September and weighed on their surplus. Yet it still touched a marginal 2-day high following yesterday’s bullish doji at multi-year lows.
  • Minor ranges overall, AUD is the strongest major, elsewhere majors remain in low-ranging holding patterns.
  • Asian Cash Indices % Change
    Asian Cash Indices % Change

    Equity Brief:

    • Asian stock markets have continued to see further downside, taking the cue from another bloodbath seen overnight in the U.S. stock markets. In additional, the U.S. benchmark stock index, S&P 500 has seen its first back to back drop of more than 1% in 2019. South Korea’s KOSPI 200 has managed to “escape” the bleeding as its stock exchange is closed today for a public holiday.

  • One of the worst performers as at today’s Asian mid-session is Japan’s Nikkei 225. It shed 2.20% in line with a stronger JPY where the USD/JPY hit a 3-day low of 107.00. Also, latest data on Japan’s services sector for Sep has indicated a slow-down in growth over Aug where the Jibun Bank Japan Services PMI dropped to 52.8 from 53.3 seen in August.
  • The slowdown in growth seen in Japan’s services sector, the main driving force so far in order to maintain a positive economic growth to offset the negative impact from a 9-month export slump is a concern to market participants. The government has just imposed an increase in sales tax to 10% from 8% that came into effect on 01 Oct which can lead to a slowdown in future domestic consumption where the services sector is dependent on.
  • Australia’s ASX 200 also sees further downside as it tumbled by -2.23% to print a 4-week low of 6475 led by technology and energy stocks that has declined by -2.50% and -3.02% respectively.
  • Adding salt to the on-going negative sentiment, the U.S. administration has decided to hike tariffs on European produces; 10% tariffs on European aircrafts and 25% duties on other goods such wines and cheese as punishment for illegal EU aircraft subsides.
  • After a 2-day decline of 3.5% in the S&P 500 to print a low of 2875 seen yesterday, the S&P 500 E-Mini futures has traded sideways in a tight range of 9 points so far in today’s Asian session.
  • Up Next

    • Final PMI reads for France, Germany and the Eurozone are released early in the European session. Major revisions aren’t expected but if they are lowered, it simply feeds into the negative sentiment regarding global growth. Keep Euro crosses and DAX on your radar.

    • However, the highlight could be ISM’s non-manufacturing PMI for the U.S. Given we saw ISM manufacturing tank to a 10-year low this week, Non-manufacturing (NM PMI) could receive extra scrutiny. Although NM PMI has remained expansive since the GFC, a slower rate of expansion points towards a broader slowdown and could exacerbate risk-ff sentiment if it slows enough later today. Therefor a weak print could weigh on USD and U.S. indices.
    Economic Calendar
    Economic Calendar

    Original Post

    Market Brief: Treading Water Ahead Of ISM Services PMI
     

    Related Articles

    Scott Barkley
    AUD/USD Channel Trade By Scott Barkley - Sep 21, 2021

    Bearish:USDX is headed down at the time of this post. Currently we are at 1.7247. Aussie Monetary minutes were considered not good. We are looking for a continuation to the ATR...

    Market Brief: Treading Water Ahead Of ISM Services PMI

    Add a Comment

    Comment Guidelines

    We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

    •            Enrich the conversation, don’t trash it.

    •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

    •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

    • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
    • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
    • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
    • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
    • Only English comments will be allowed.

    Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

    Write your thoughts here
     
    Are you sure you want to delete this chart?
     
    Post
    Post also to:
     
    Replace the attached chart with a new chart ?
    1000
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
     
    Are you sure you want to delete this chart?
     
    Post
     
    Replace the attached chart with a new chart ?
    1000
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Add Chart to Comment
    Confirm Block

    Are you sure you want to block %USER_NAME%?

    By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

    %USER_NAME% was successfully added to your Block List

    Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

    Report this comment

    I feel that this comment is:

    Comment flagged

    Thank You!

    Your report has been sent to our moderators for review
    Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

    Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
    Continue with Google
    or
    Sign up with Email