Daily summary: Wall Street tries to
- Wall Street indices opened the session lower, but failed to maintain bullish momentum, with US100 gains 0.1% and US500 rising 0.15%. 10-year treasury yields dropped below 3.8% after weaker than expected JOLTS US labour market report
- US JOLTS came in 7.67M vs 8.1M exp. and 8.184M previously
- Factory Orders came in 5% vs 4.8% exp. and -3.3% previously
- US Core Durable Goods (revised): -0.2% vs -0.2% exp. and -0.2% previously
- Tesla lead gains among Big Tech company, with ore than 5% gains fueled by increasing demand in China and possible 6-seat Tesla Y debut. Nvidia is traded flat after yesterday, weak when stock recorded historical 1-session record of $279 billion market cap decline
- Dollar Tree declines after weaker than expected earnings, citing weakening demand. Software company GitLab gains 20% on rising 30% YoY revenue and overall strong Q2 report, supported by Baird analysts comments
- European indices end today’s session with declines among all main markets. German index DAX lost 0,8%, CAC40 declined almost -1%, FTSE 100 index lost -0,35% and Stoxx Europe 600 index declining almost -1%.
- Final PMI readings for Eurozone came mixed, with services slightly below market expectations.
- Eurozone final Composite PMI for August: 51.2 vs 51 exp.
- Eurozone final services PMI for August: 52.9 vs 53.3. exp.
- Germany final Composite PMI for August:48.4 vs 48.5 exp.
- Germany final services PMI for August: 51.4 vs 51.2
- UK final Composite PMI for August: 53.8 vs 53.4 exp.
- UK final services PMI for August came in 53.7 vs 53.3 exp.
- Fed Bostic commented that inflation in US economy is dropping ‘sustainably’ however this decline is still not warranted, while Fed should not be too restrictive, as labor market shows weakening signals, with business sources citing slowing economic dynamics
- CBOE Volatility Index (VIX) dropped below 18.5, but in the second half of the session we can see slightly rebound above 19 again, signalling somehow elevated volatility expectations ahead of Friday NFP report
- Bank of Canada decided to cut rates by 25 bp to 4.25%. Decision was in line with expectations therefore
- Among main currencies, Japanese yen showed the strongest increase of around 0.8%; Swiss Franc also gained, signalling ‘save haven’ demand across fx markets. The only G10 currency that declined today was US dollar.
- Wheat December futures contract on Chicago Board of Trade gains almost 2%, leading gains among US-traded soft commodities. Weaker than expected European crop season and lowered production expectations across the Black Sea, Russia and Eurozone supported seasonality unwinding short positions from large speculators
- OIL loses 0.6%, NATGAS is down 2% today; aluminum, copper and zinc lose more than 1% pressured also by weaker than expected macro readings from China
- Silver and gold are quite calm today, gaining 0.1% and 0.05% respectively. Bitcoin surprisingly rebounded above $58k, despite the strongest since the beginning of August net ETFs outlaws of almost $300 millon on yesterday session.
