Market Brief
Asian equity markets have opened on a positive note this morning following the strong gains posted in the US session yesterday on the back of increased risk seeking resulting from better than expected economic data out of the US. The ISM manufacturing index bettered analysts estimates at 56.3 actual v 52.8 exp while the ADP employment reading showed a drop in new jobs added, showing a decrease to -10k jobs. We remain sceptical on the weaker ADP reading, as the number has been consistently undershooting the more official US department of labor estimates. The positive manufacturing data has kept risk seeking buoyed this morning, with the Nikkei posted gains of 0.62% and the Shanghai composite up 0.94% on the day.
Earlier in the morning, data showed that Australia’s trade surplus narrowed more than expected. The surplus declined to $1.89 billion AUD during the month of July from a revised $3.44 billion AUD in June. The AUDUSD pair was weaker on the news, hitting an intraday low of 0.9055 while the AUDJPY pair hit a low of 76.14 on the day. Ahead we have a plethora of macroeconomic drivers including GDP readings from Switzerland and the Euro-zone region. The ECB rate decision due at 1145 GMT is expected to remain unchanged at 1.00%.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 8982.19 | + 0.62 |
| Hang Seng Index | 20886.11 | + 1.27 |
| Shanghai Index | 2647.64 | + 0.94 |
| S&P future | 1077.30 | - 0.41 |
| DJIA futures | 10236 | - 0.35 |
| FTSE futures | 5359 | + 3.03 |
| DAX futures | 6076 | + 2.82 |
| World Markets | Current Level | % Change |
| Crude wti | 73.78 | - 0.18 |
| Gold | 1246.93 | + 0.21 |
| Silver | 19.31 | - 0.25 |
| USD Index | 82.51 | + 0.07 |
| VIX | 23.89 | - 8.29 |
| Todays Calender | Estimates | Previous | Country / GMT |
| GDP (QoQ/YoY) | 0.8%/2.6% | 1.0%/2.3% | CHF / 0545 |
| MoM Nationwide House Prices sa | -0.30% | -0.50% | GBP / 0600 |
| YoY Nationwide House Prices nsa | 4.90% | 6.60% | GBP / 0600 |
| Retail Sales | 1.00% | CHF / 0715 | |
| PMI | 53.2 | 54.1 | GBP / 0830 |
| QoQ Government Expenditure | 0.20% | EUR / 0900 | |
| GDP (QoQ/YoY) | 1.0%/1.7% | 1.0%/1.7% | EUR / 0900 |
| PPI (MoM/YoY) | 0.3%/4.0% | 0.3%/3.0% | EUR / 0900 |
| European Central Bank Interest Rate Decision | 1.00% | 1.00% | EUR / 1145 |
| Initial Jobless Claims | 478K | 473K | USD / 1230 |
| Continuing Claims | 4400K | 4456K | USD / 1230 |
| Nonfarm Productivity | -1.90% | -0.90% | USD / 1230 |
| Unit Labor Costs | 1.40% | 0.20% | USD / 1230 |
| Factory Orders | 0.50% | -1.20% | USD / 1400 |
| Pending Home Sales (MoM/YoY) | -1.5%/-- | 0.129353234 | USD / 1400 |
Currency Tech
EURUSD
R 2: 1.2910
R 1: 1.2860
CURRENT: 1.2795
S 1: 1.2707
S 2: 1.2580
USDJPY
R 2: 85.05
R 1: 84.60
CURRENT: 84.23
S 1: 84.00
S 2: 83.67
GBPUSD
R 2: 1.5599
R 1: 1.5536
CURRENT: 1.5442
S 1: 1.5347
S 2: 1.5256
AUDUSD
R 2: 0.9200
R 1: 0.9120
CURRENT: 0.9076
S 1: 0.8938
S 2: 0.8900
-
S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
