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Daily Briefing – Monday, September 4, 2017


India’s central bank has called out PM Modi’s proclaimed “war on cash”, saying that nearly all of last year’s cancelled banknotes were either exchanged for new ones or deposited. The result of his declarations have been a slowing of GDP growth to 5.7% in the year’s 2nd quarter (a 3-year low) and a collapse in the country’s composite PMI. In China, the Caixin Manufacturing PMI showed a 3rd month of gains in a row, pushing up the Shenzhen Composite up 0.76% and the Shanghai Composite up a third. Hong Kong and Japan finished lower as the Yen rose on fear.




Following weak home sales Thursday and even weaker jobs data on Friday, US manufacturing indexes were weaker in August although better than expected. On the upside, stock markets closed up as the readings weakened chances of another interest rate hike this year, but investors await this morning’s reaction to geo-political jitters as NKorean tensions rise again.



The ECB has decided to postpone its decision on additional assets purchasing in 2018, weighing down on the Euro that had been rising on dollar weakness. European stocks are all sinking after North Korea’s weekend nuclear test, with the Eurostoxx down ½%. This morning’s July Producer Price Index was down 0.4% YoY, but investor confidence is up ½ a point.



Friday’s rig count remained stable at 759 this past week, and oil prices finally reacted on Friday to US gasoline supply concerns emanating from the Texas closure of refineries on the back of Hurricane Harvey – jumping by 75 cents a barrel to 47.35. Gold experienced a $10 bull-gap, having already been in a rising trend alongside the weekend’s latest nuclear test in North Korea. The metal is currently at 1340 – a 1-year high.


Today’s Events

11:01 PM GMT UK: BRC Retail Sales
1:45 AM GMT (+1) China: Caixin Services PMI
04:30 AM GMT (+1) Australia: RBA Interest Rate Decision

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