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Wednesday, 1 September 2021
Dow Jones Ends Solid Month on a Downbeat as ASX 200 Focuses on a Rising Wedge
Treasuries Close Modestly Lower Following Lackluster Session
Treasuries fluctuated over the course of the trading session on Tuesday before ending the day modestly lower.
Bond prices bounced back and forth across the unchanged line in morning trading before settling in negative territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 1.9 basis points to 1.304 percent.
The downturn in treasuries seemed to coincide with the release of a report from the Conference Board showing a substantial deterioration in consumer confidence in the month of August.
The Conference Board said its consumer confidence index tumbled to 113.8 in August from a downwardly revised 125.1 in July.
Economists had expected the consumer confidence index to drop to 123.0 from the 129.1 originally reported for the previous month.
With the bigger than expected decrease, the index slumped to its lowest level since hitting 95.2 in February of 2021.
"Concerns about the Delta variant-and, to a lesser degree, rising gas and food prices-resulted in a less favorable view of current economic conditions and short-term growth prospects," said Lynn Franco, Senior Director of Economic Indicators at The Conference Board.
She added, "While the resurgence of COVID-19 and inflation concerns have dampened confidence, it is too soon to conclude this decline will result in consumers significantly curtailing their spending in the months ahead."
Reports on private sector employment and manufacturing activity may attract attention on Wednesday, although trading activity may remain somewhat subdued ahead of the release of the more closely watched monthly jobs report on Friday.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2181966/
Crude Oil Futures Settle Notably Lower
Crude oil futures settled lower on Tuesday amid concerns about likely excess supply in the market with OPEC and allies set to increase production, and the restoration of crude output in the U.S. after Hurricane Ida.
Weak Chinese economic data weighed as well on crude oil prices.
West Texas Intermediate Crude oil futures for October ended down by $0.71 or about 1% at $68.50 a barrel.
The Organization of the Petroleum Exporting Countries and its allies are set to meed on Wednesday. It is widely expected that the group will agree to proceed with plans to add another 400,000 barrels per day of supply each month through December.
China's service sector contracted in August amid the renewed virus flare-up, official survey results from the National Bureau of Statistics showed on Tuesday.
The official non-manufacturing Purchasing Managers' Index, which measures the performance of the services and construction sectors, declined to 47.5 in August from 53.3 a month ago. A reading below 50 indicates contraction in the sector.
At the same time, the factory PMI came in at 50.1, down from 50.4 in the previous month. The expected reading was 50.2.
The composite output index fell to around 48.8 in August from 52.4 in July.
Meanwhile, traders await weekly inventory data from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API is due out later today, while EIA's inventory data is due Wednesday morning.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2181965/
How to Research Stocks: A Step by Step Guide
Australian Dollar Forecast: AUD/USD Eyes Q2 GDP to Kick Off September Trading
Gold Futures Settle Higher
Gold futures settled higher on Tuesday as the dollar stayed subdued against most of its peers, and Treasuries held steady, reflecting concerns of a slower recovery from the coronavirus pandemic.
The dollar hovered around three-week lows against major rivals. The yield on 10-year U.S. Treasury Notes traded stood around 1.28%.
Gold futures for December ended up by $5.90 or about 0.3% at $1,818.10 an ounce. Gold futures gained less than $1 in August.
Silver futures for December ended unchanged at $24.006 an ounce, while Copper futures for December settled at $4.3750 per pound, down $0.005 from the previous close.
Data showing a contraction in China's services sector activity and a slower pace of expansion of the country's factory activity dented optimism about a strong economic rebound from the pandemic.
In U.S. economic news, a report from the Conference Board showed a substantial deterioration in U.S. consumer sentiment in the month of August.
The Conference Board said its consumer confidence index tumbled to 113.8 in August from a downwardly revised 125.1 in July. Economists had expected the consumer confidence index to drop to 123.0 from the 129.1 originally reported for the previous month.
With the bigger than expected decrease, the index slumped to its lowest level since hitting 95.2 in February of 2021.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2181964/
India GDP Rebounds Strongly In June Qtr Due To Low Base Effect
India's economy logged a record growth in the three months to June, but that came from an extremely low base in the same period last year when the coronavirus pandemic and resultant lockdowns hurt economic activity severely.
Gross domestic product grew 20.1 percent year-on-year in the April to June quarter versus a 24.4 percent contraction in the same period of the fiscal year 2020-21, preliminary estimates from the statistics ministry showed Tuesday. Economists had forecast 20 percent growth. The quarterly gross value added rose 18.8 percent year-on-year versus a 22.4 percent drop in the same quarter last year.
Among the main sectors, the gross value added in the agriculture, forestry and fishing sector grew 4.5 percent. The sector was the only one to log growth, 3.5 percent, in the same quarter last year despite the pandemic. The construction sector registered the biggest growth of 68.3 percent in value added, followed by manufacturing with an increase of 49.6 percent. Value added in the sector that includes trade, hospitality, transport and communication grew 34.3 percent. Growth was modest at 3.7 percent in the sector that includes financial and real estate services. As the annual growth figure is almost entirely boosted by the low base in the year-ago period, economists drew attention to the quarter-on-quarter change in GDP that the statistical office does not provide. Citing its own calculation, Capital Economics said the Indian economy contracted by 12 percent seasonally-adjusted terms in the June quarter amid the ferocious second virus wave and reintroduction of containment measures.
Despite a rebound in activity in recent times as the second wave subsided rather quickly, the recovery is fragile, Capital Economics economist Shilan Shah said. "Above all, with vaccination coverage still very low and the rollout struggling to build momentum, there remains a risk of renewed virus outbreaks, which would force authorities to tighten restrictions again," Shah said. That could further damage the heavily impaired banking sector, the economist said.
"Under these circumstances, the RBI won't be in any rush to withdraw policy support," Shah added.
The central bank has projected 9.5 percent growth for the current financial year ending March 2022.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2181963/