Global Markets:
- Asian stock markets: Shanghai Composite down 2.15 %, Hang Seng lost 3.10 %, ASX fell 2.05 %, Nikkei closed for a holiday
- Commodities: Gold at $1123.60 (-0.10 %), Silver at $14.73 (-0.20 %), WTI Oil at $46.25 (-0.30 %), Brent Oil at $48.80 (-0.20 %)
- Rates: US 10 year yield at 2.13, UK 10 year yield at 1.78, German 10 year yield at 0.60
News & Data:
- China Caixin Manufacturing PMI (Sep, P): 47.0 (exp 47.5 prev 47.3)
- PBOC Fixes Yuan Reference Rate At 6.3773 (prev 6.3721)
- China President Xi: China Economy Will Maintain Stable & Relative Fast Growth, Operating In Reasonable Range — BBG
- Xi: China's Stock Market Has Reached Phase Of Self-Recovery & Adjustment — BBG
- Fed’s Lockhart: Fed 2% Inflation Goal Provides Cushion From Deflation — BBG
- Lockhart: Comfortable With Idea Fed Will Raise Rates This Year
- Lockhart: Didn't Want Fed To Hike In `Teeth Of Volatility'
- Asian stocks extend losses on weak China PMI survey; dollar strong – RTRS
- Aussie dollar slides after weak China PMI, yen firms – RTRS
- Oil prices dip as China economic concerns pull down commodities – RTRS
Markets Update:
Sentiment in global equity markets turned negative amid falling commodity prices, which then helped to boost the US Dollar. The Greenback is up against all of the major currencies, except the Japanese Yen. EUR/USD fell to a low of 1.1105 overnight and the focus now lies on the key support level at 1.1085. A break below could pave the way for a test of 1.10 and then eventually a move back to 1.0850, the early August lows. The Pound is having a bad week as well – GBP/USD dropped to 1.5340 in Asia, about 220 pips lower from Monday's high. Key support is seen at 1.5330, which is last Wednesday's low, and then 1.5160, the current monthly low.
USD/JPY is struggling amid the negative sentiment in the equity markets. The pair reached a high of 120.32 in the early Hong Kong session, but eventually fell to a low of 119.66. AUD/USD broke sub-0.7080 support and is now on its way to test the 0.70 level once again. NZD/USD is approaching 0.6240 support (current September low), while USD/CAD is benefiting from weak commodity prices & USD strength.
Upcoming Events:
- 08:00 BST – French Manufacturing PMI
- 08:00 BST – French Services PMI
- 08:30 BST – German Manufacturing PMI
- 08:30 BST – German Services PMI
- 09:00 BST – Euro Zone Manufacturing PMI
- 09:00 BST – Euro Zone Services PMI
- 13:30 BST – Canadian Retail Sales
- 14:00 BST – ECB President Draghi speaks
- 14:45 BST – US Manufacturing PMI
- 17:00 BST – German Bundesbank President Weidmann speaks
