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America’s Roundup: Dollar slides vs yen, euro, Wall Street slumps, Gold climbs 1%,Oil slides 2.5% as U.S. inventories build, weak economic data weighs-October 3rd 2019

Market Roundup

• U.S. manufacturing ISM survey hits decade low

• Private payrolls growth in U.S. slows in September -ADP

•US Sep ADP Nonfarm Employment Change 135K, 140K forecast, 157K previous               

•US Sep ISM NY Business Conditions 42.8%, 50.3% previous

•US Sep ISM-New York Index 875.4, 879.0 previous        

• Ireland Sep Irish Exchequer Returns 0.038B, -0.625B previous

• Brazil  Foreign Exchange Flows -2.362B previous

Looking Ahead - Economic Data (GMT)

• 22:30  Australia Sep AIG Services Index 52.5 forecast, 19.1 previous

• 22:30  Australia Sep AIG Services Index 51.4                                    

• 23:50 Japan Foreign Bonds Buying -164.0B previous

• 23:50 Japan Foreign Investments in Japanese Stocks

• 00:00 New Zealand ANZ Commodity Price Index (MoM) 0.3 previous

• 00:30 Japan Sep Services PMI 52.8, 53.3 previous

• 01:30 Japan Aug Exports (MoM)  1% previous

• 01:30  Japan Aug Imports (MoM)   3% previous

Looking Ahead - Events, Other Releases (GMT)

•01:00 Japan BOJ Board Member Funo Speaks

Currency Summaries

EUR/USD: The euro gained against the U.S. dollar on Wednesday, as dollar dipped on worries about global growth following data a day earlier that showed a sharp decline in U.S. manufacturing activity. U.S. manufacturing contracted at the fastest pace in more than a decade in September, making the United States the latest country to suffer a manufacturing downturn amid a trade war between Washington and Beijing. The euro was up 0.24 percent at $1.0959. An index that tracks the dollar versus a basket of six major currencies was down 0.14 at 99.04. Immediate resistance can be seen at 1.0960 (9 DMA), an upside break can trigger rise towards 1.1000 (Psychological level).On the downside, immediate support is seen at 1.0876 (Lower BB), a break below could take the pair towards 1.0800 (Psychological level).

GBP/USD: Britain's pound steadied against the dollar on Wednesday, as buyers stepped in after Prime Minister Boris Johnson made a final Brexit offer to the European Union. The pound had earlier weakened 0.5% to $1.2227, but recouped all its losses after Johnson’s speech to his Conservative party’s annual conference, and the EU’s response, to trade flat at $1.2302. It had hit a four-week low of $1.2205 in the previous session. Versus the euro, the pound was a shade weaker at 88.94 pence. Immediate resistance can be seen at 1.2352 (9 DMA), an upside break can trigger rise towards 1.2400 (Psychological level).On the downside, immediate support is seen at 1.2225 (Daily low), a break below could take the pair towards 1.2157 (Lower BB).

USD/CAD: The Canadian dollar declined against its U.S. counterpart on Wednesday, as global worries and US-China trade frictions weighed on Canadian dollar. The price of oil, one of Canada’s major exports, gave up its earlier gains as depressed global markets offset industry data showing a surprise drop in U.S. crude inventories. The U.S. manufacturing data confirmed that the US economy was feeling the burn from a prolonged trade war between the United States and China .The Canadian dollar was last trading 0.71% lower at 1.3313 to the greenback. Immediate resistance can be seen at 1.3250 (100 DMA), an upside break can trigger rise towards 1.3298 (200 DMA).On the downside, immediate support is seen at 1.3254 (DMA), a break below could take the pair towards 1.3200 (Psychological level).

USD/JPY: The dollar declined against Japanese yen on Wednesday, as yesterday’s disappointing manufacturing data knocked dollar off from two-year highs. U.S. manufacturing contracted at the fastest pace in more than a decade in September, making the United States the latest country to suffer a manufacturing downturn amid a trade war between Washington and Beijing. The greenback was trading 0.50 percent lower against the safe-haven yen, which traded at 107.19 per dollar. Strong resistance can be seen at 107.61 (21 DMA), an upside break can trigger rise towards 108.00 (Psychological level).On the downside, immediate support is seen at 107.00 (50 DMA), a break below could take the pair towards 106.80 (Lower BB).  

Equities Recap

European stock markets dived almost 3% to log their worst day since last December on Wednesday as the threat of a transatlantic trade war and dismal economic data added to fears about a faltering global economy.

UK's benchmark FTSE 100 closed down 3.23 percent, Germany's Dax ended down by 3.12 percent, France’s CAC finished the day down by 2.76 percent.

Wall Street’s main indexes were on track for their sharpest one-day declines in nearly six weeks on Wednesday after a report on private sector hiring suggested that fallout from the U.S.-China trade war is contaminating the U.S. economy.

Dow Jones closed down by -1.89% percent, S&P 500 ended down by -1.77 % percent, Nasdaq finished the day down by -1.55 % percent.

Treasuries Recap

Weak U.S. private sector jobs data and a jump in expectations that the Federal Reserve will cut interest rates in October drove two-year Treasury yields to a one-month low on Wednesday.

The benchmark 10-year note yield was last 4 basis points lower at 1.604%, with the 30-year bond yield down 3.1 basis points at 2.074%.

Commodities Recap

Gold prices rose more than 1% on Wednesday as a report showing weaker-than-expected hiring by U.S. private employers stoked economic fears the day after another report showed weak manufacturing activity in the world’s largest economy.

Spot gold rose 1.1% to $1,494.61 per ounce as of 10:30 a.m. EDT (1430 GMT). A day earlier, the session low of $1,458.50 was the lowest in nearly two months, but prices bounced up as much as 1%.U.S. gold futures gained 0.8% to $1,501 an ounce.

Oil prices fell more than 2.5% on Wednesday after official data showed a rise in U.S. crude inventories, adding to worries about an oversupplied market as weak economic readings in the United States depressed global markets.

Brent crude futures were down $1.52 at $57.37 a barrel by 11:33 a.m. ET (1533 GMT.) U.S. West Texas Intermediate (WTI) crude futures fell $1.34 to $52.28 a barrel.

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