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

U.S. Data, Korea Rate Hike, SEC Probes DWS ESG Hype - What's Moving Markets

EconomyAug 26, 2021 06:31AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- U.S. GDP and jobless claims data will refresh the backdrop for Jerome Powell's Jackson Hole speech on Friday. Korea raises interest rates, the first big Asian country to do so since the pandemic started. Stocks are becalmed ahead of the Fed while Delta Air Lines' new vaccine policy stirs controversy. The SEC is going after the ESG industry and commodities suffer a fresh scare on Chinese growth. Here's what you need to know in financial markets on Thursday, 26th August.

1. GDP, jobless claims and price data set the stage for Powell

U.S. economic data takes on a special significance today, refreshing the backdrop for Jerome Powell’s keenly awaited speech on Friday at the Federal Reserve’s Jackson Hole symposium.

The first revision of GDP data for the second quarter will be issued at 8:30 AM ET (1230 GMT), and while this will be largely backward-looking, some of its sub-components will still be of interest – notably the personal consumer expenditures prices index, which is the Fed’s preferred measure of inflation.

Core PCE prices rose 6.1% in the year through the second quarter, according to the government’s first estimate. Any revision to that number may affect perceptions of Powell’s willingness to flag a tapering of bond purchases on Friday.

In addition to all that, there will be the (more timely) weekly jobless claims numbers also at 8:30 AM ET, and the Kansas City Fed’s regional business survey at 11 AM ET.

2. Korea raises rates; ECB minutes due

Some central banks, of course, aren’t waiting for the Fed. The Bank of Korea became the biggest central bank in Asia to start tightening monetary policy after last year’s splurge in the first stage of the pandemic.

The bank raised its key rate to 0.75% from 0.5%, a decision that was not expected by most analysts.

The loose policy adopted last year has fueled a house price boom and a surge in household debt, both of which are growing at annual rates of over 10%.

Elsewhere, the European Central Bank is scheduled to release the minutes of its latest policy meeting, but these are unlikely to produce any fears of a policy tightening, given the warnings over the German growth outlook in recent days. Germany’s monthly consumer confidence index for September plunged, survey maker GfK said earlier.

3. Stocks set to open mixed; Delta in focus

U.S. stocks are set to open mostly lower later, after eking out new record highs in low volume on Wednesday. Premarket moves are looking moderate, with investors already holding off big new bets until after today’s data and Powell’s speech on Friday.

By 6:15 AM ET, Dow Jones Futures were flat, while S&P 500 Futures were down 0.1% and Nasdaq 100 Futures were down 0.2%.

Companies likely to be in focus later include Williams-Sonoma (NYSE:WSM), which was up over 11% in premarket after saying there was no sign of the post-pandemic trend for home improvement easing up. The company raised its guidance again after beating forecasts with its quarterly numbers.

Also in the spotlight will be Delta Air Lines (NYSE:DAL), which became the latest high-profile company to take action against unvaccinated employees. The airline will add $200 to their premiums under the company’s health insurance plan and is also threatening to reduce their sickness benefits.

4. SEC puts down a marker to ESG greenwashing

U.S. regulators stirred up the cozy, feelgood world of ESG investing, with an investigation into whistleblower allegations at German asset manager DWS Group (DE:DWSG).

The Wall Street Journal reported people familiar with the matter as saying the Securities and Exchanges Commission is in the early stages of looking into claims by DWS’s former head of sustainability that the company overstated its use of environmental, social and governance-related benchmarks. DWS stock, most of which is owned by Deutsche Bank (DE:DBKGn), fell sharply in the European morning.

ESG investing has been the hottest new area for institutional money managers in the last few years, offering a new way to offer premium products at a time when cheaper passive investing strategies are eating their traditional business. Assets under management by ESG funds have more than tripled in two years to over $2 trillion, according to data from Morningstar.

5. Oil struggles after latest Chinese worries

Oil prices struggled with resistance around the $70 level, despite data from the U.S. government showing healthy draws on crude and gasoline stockpiles as Labor Day, traditionally seen as the end of the summer driving season, draws closer.

By 6:20 AM ET, U.S. crude futures were down 0.9% at $67.69 a barrel, while Brent Futures were down 0.8% at $70.68 a barrel, both benchmarks consolidating after a solid rise at the start of the week in response to U.S. and Chinese economic data.

Other commodities were also in consolidation mode, with both base and precious metals falling, as China signalled fresh measures to cool the real estate sector, ending a three-day rally in local stocks.

U.S. Data, Korea Rate Hike, SEC Probes DWS ESG Hype - What's Moving Markets
 

Related Articles

Bundesbank President Weidmann quits
Bundesbank President Weidmann quits By Reuters - Oct 20, 2021

(Reuters) - Bundesbank President Jens Weidmann, a relentless critic of the European Central Bank's ultra-easy monetary policy, will step down from his post on Dec. 31, with more...

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.
Comments (5)
Roth Mazy
Roth Mazy Aug 26, 2021 6:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trini Things
Trini Things Aug 26, 2021 6:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Will th us dollar lose value ?
me ish
me ish Aug 26, 2021 6:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
of course it will - it's lost 98% of its value since 1900 and that has accelerated massively since Nixon took it off the gold standard in 71. The current inflation figures of 5.1 suggest clearly show it is losing its value the entire time at an ever increasing speed.
Trini Things
Trini Things Aug 26, 2021 6:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Will th us dollar lose value ?
laxmi rokaya
laxmi rokaya Aug 26, 2021 6:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
ipo registrar
Salaam Khan
Salaam Khan Aug 26, 2021 6:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
no sir
laxmi rokaya
laxmi rokaya Aug 26, 2021 6:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
ipo shear
احمد الشعابي
احمد الشعابي Aug 26, 2021 6:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
ipo shsear
 
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