Morning Report APAC: Gold reclaims $1350, Sep rate hike less likely
- Gold jumped to its highest level in three weeks
- The US ISM Non-Manufacturing index fell to 51.4 from 55.5, well below expectations
- USD tumbled, Treasury yields were lower and the chance of a Sep rate hike fell
- USDJPY traded to a low of 102 and selling pressure continues
By Saxo APAC Sales Trading
0915: USD – Federal Reserve’s John Williams speaks on economic outlook in Reno, Nevada
2115: GBP – Bank of England’s Mark Carney, Jon Cunliffe, Kristin Forbes, Ian McCafferty speak in London
US: The US Federal Reserve's labour market conditions index declined in August by 0.7%, which may give some Fed officials pause post the weaker-than-expected NFP data last week.
ISM Non-Manufacturing data had a sharp fall to 51.4 from 55.5 last month, well below the 54.9 expectations. This saw USD tumble post-release, Treasury yields lower and September hike probabilities paired.
Europe: Europe's GDP came in line with expectations and prior at 1.6% y/y.
German Retail PMIs improved further to 54.1, up from 52.0. However, factory orders declined y/y by 0.7%, below expectations.
The rest of European retail PMIs showed strength, with the exception of Italy which was a notable outlier at 43.2, firmly in contractionary territory but up from prior month.
USD thumped across the board post the weak US data, USDJPY traded to a low of 102 in the US session and that selling pressure continues through into the Asian morning, trading below 101.5.
The selling was broad-based, with all currencies trading stronger against the USD.
Emerging Markets tracked the USD moves with strong performance across the board. Carry trades remain the best performers as investors continue to seek out yield.
Foreign exchange movements
- China Vanke (2202 HK): Henderson Fund sells London property to Vanke: Property Week
Evergrande Cinema (3333 HK): Expanding in China: Red Pulse
Sanlian Commercial (600898 CH): Plans to buy Zhejiang Dejing for 800m yuan
- Adastria (2685 JP): First-half operating profit 7.5bn yen vs company forecast 8.1bn yen, Nikkei says
McDonald’s Japan (2702 JP): August same-store sales up 15.9% y/y
Seiko Epson (6724 JP): To begin discussions on restructuring Orient Watch subsidiary
- CIMB (CIMB MK): Gets bank operating license in Vietnam
Singapore Exchange (SGX SP): Sets up working group to assess, improve securities market
Nava Nakorn (NNCL TB): Says its operation unaffected by transformer fire
– Edited by Susan McDonald
This report was compiled by the Saxo APAC Sales trading team in Singapore – the home of social trading. Follow the team on @SaxoStrats or post your comment below to engage with Saxo Bank's social trading platform. Follow us on @SaxoStrats on Twitter
All material contained herein is provided for your general information. The information and commentaries are not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort offered or endorsed by Saxo Capital Markets Pte. Ltd. (“SCM SG”). Any expression of opinion (which may be subject to change without notice) is personal to the presenter and/or author; they do not reflect the view or opinion of SCM SG or its affiliates, neither do they constitute an endorsement of SCM SG’s view or analysis of the same.
None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. SCM SG does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment based on any commentaries or information provided here.
For further information, please click here.
Saxo Capital Markets Pte Ltd ("Saxo Capital Markets") is a licensed subsidiary of Saxo Bank A/S, an online trading and investment specialist. Saxo Capital Markets serves as the APAC headquarters and holds a capital markets services licence under the Monetary Authority of Singapore; and a commodity broker licence issued by the International Enterprise Singapore. Clients can trade Forex, CFDs, Stocks, Futures, Options and other derivatives via SaxoWebTrader and SaxoTrader, the leading multi-asset online trading platforms.
Trading risks are magnified by leverage - losses can exceed your deposits. Trade only after you have acknowledged and accepted the risks. You should carefully consider whether trading in leveraged products is appropriate for you based on your financial circumstances. Please consider our Risk Warning and General Business Terms before trading with us. Please see full General Disclaimer.
Thousands of serious traders receive free news and analysis from Saxo Capital Markets each day. Saxo Capital Markets never sends these emails unsolicited; they are sent following acceptance of your membership and subscription request by Saxo Capital Markets at saxomarkets.com.sg. If you do not wish to receive any emails from Saxo Capital Markets in the future, please reply to this email with the word "UNSUBSCRIBE" in the subject header.
Samsung Hub | 3 Church Street | # 30-01 | Singapore 049483
Company No. 200601141M