Daily Briefing – Tuesday, September 5, 2017
North Korean tensions broke Europe’s 3-day winning streak in financial markets. Switzerland’s SMI was the most worried, shedding 0.86% of its value, while other benchmarks held losses to 0.3-0.4%. The Eurozone’s PPI showed a monthly flattening in July, pushing the YoY figure down to 2%, while in Britain, BRC retail sales were up to 1.3% in August. The nation’s construction sector PMI indicates a slowing to 51.1 – a one-year low.
China’s Caixin services PMI early today showed a 1.2 point increase to 52.7 in August after 2 months of weakening data. Chinese indexes rose for a 3rd session in arrow in anticipation of reforms to be announced at the Communist Party congress in October. Japan’s services sector came in at 51.6 for August – a 6-month low. The Yen continues strengthening on risk aversion, though, pressuring the Nikkei down 1.3% overnight, as North Korea prepares to test another IC missile. Australia’s current accounts deficit doubled in Q2; and the RBA overnight decided to maintain its 1.5% interest rate.
US indexes futures fell during the New York session on worries over North Korean tensions. They did manage, though, to close slightly higher – in the 0.2% region for the S&P and Dow, 0.1% for the Nasdaq. Canada seems to be joining US outrage at Mexico’s reluctance to toe NAFTA lines on wages and worker conditions.
Petrol prices are on their way down again as Texas reopens Gulf Coast refineries, a fifth of which had been closed due to fears of Hurricane Harvey damage, tapering WTI oil’s rise above 47.50. Meanwhile, dumping is being considered the reason behind gold’s flash-crash after breaking above 1344 Monday morning. The metal continues trending sideways in the 1340 region with silver, platinum and copper in its wake.
|7:15-8:30 AM GMT||Spain, Italy, France, Germany & EU: Services & Composite PMIs, followed at 9 by EU Retail Sales|
|1:45 AM GMT||US: Factory Orders, with speeches by Brainard, Kashkari & Kaplan throughout the day|
|1:30 AM GMT (+1)||Australia: GDP|