As the North American session begins, the GBP is the strongest and the JPY is the weakest. The USD is mostly higher but with modest changes of 0.10% vs the EUR, CHF, CAD, and AUD.
The US ADP employment estimates will be released at 8:15 AM ET with the expectations of 195K. Last month the data came in at 324K which was well above the NFP release of 187K. The two are really not in synch. As a result, the reaction will likely be muted. US nonfarm payroll on Friday is expected to rise by 169K, with the unemployment rate remaining near record lows at 3.5%.
The German CPI preliminary estimate for August came in at:
- MoM CPI 0.3% vs 0.3% expected
- YoY CPI 6.1% YoY vs 6.0% estimate and 6.2% last month.
- HICP MoM came in at 0.4% vs 0.3% estimate
- HICP YoY 6.4% YoY vs 6.3% estimate and 6.5% last month.
Overnight,
- Australian CPI came in at 4.9% versus 5.2% expected.
- Australian building approvals tumbled -8.1% versus -0.5% expected. That decline comes after a -7.9% decline last month
- Japan consumer confidence fell to 36.2 from 37.1 last month and 37.5% estimate
- German import prices fell -0.6% versus -0.3% estimate
- UK mortgage approvals came in at 49,000 versus 51,000 estimate
US stocks are marginally lower in trading today after sharp rises in the major indices yesterday (the S&P and NASDAQ had their best day of the month). The major indices are still on track for a negative month with 2 trading days left in the month. The Dow industrial average is down -1.99%, the S&P index is also down -1.99%, and the NASDAQ index is down -2.80%.
US yields this morning are marginally higher after falling sharply yesterday on the back of weaker JOLTS jobs at data and consumer confidence.
A snapshot of the markets as the NA session gets underway shows:
- Crude oil is trading up $0.47 or 0.58% at $81.63
- Spot gold is trading up $2.34 or 0.12% at $1939.08
- Spot silver is trading down $0.07 or -0.30% at $24.61
- Bitcoin is trading at $27,366 which is sharply higher than the $25,961 level at this time yesterday. Yesterday Grayscale won a lawsuit against the SEC which may pave the way for ETF's of bitcoin going forward.
In the US premarket for US stocks, major indices are trading marginally lower
- Dow Industrial Average futures are implying a decline of -2.67 points after rising 292.69 points yesterday
- S&P index futures are implying a decline of -2.0 points after yesterday's 64.32 point rise
- NASDAQ futures are implying a decline of -5 points after yesterday's search of 238.63 points
In the European equity markets, the major indices are trading mixed
- German DAX, -0.29%
- France's CAC, -0.19%
- UK's FTSE 100, up 0.41%
- Spain's Ibex, -0.03%
- Italy's FTSE MIB, up 0.15% (delayed)
In the Asian Pacific today, equity markets closed mixed
- Japan’s Nikkei 225, +0.33%
- China’s Shanghai Composite, +0.04%
- Hong Kong’s Hang Seng, -0.01%
- Australia’s S&P/ASX 200, plus a 1.21%
In the US debt market, yields are marginally higher after falling sharply yesterday on the back of weaker US a data
- 2-year yield, 4.912%, +2.3 basis points 5.021%, +0.7 basis points basis points
- 5-year yield, 4.304%, +2.8 basis points
- 10-year yield, 4.151%, +2.9 basis points
- 30-year yield, 4.258%, +2.2 basis points
In the European debt market, benchmark 10-year yields are trading mostly higher:
