Latest News

Futures Markets Morning Update for Monday, 2 September 2013.

European stocks were trading higher today morning as the US hold up a probable military strike against Syria, reassuring market fears over another Middle Eastern conflict. European markets increased the most in eight weeks, bouncing back from their second weekly drop, as a measure of Chinese manufacturing activity posted an upbeat data confirming the manufacturing sector in the country expanded during the month of August. US index futures and Asian shares also gained.

Asian indexes commenced September higher after two different upbeat data of Chinese factory activity reassured hopes of a recovery in the world’s second largest economy. China’s Economy is developing after a half year of slow down, with a manufacturing weigh increasing to a 16 month high in August. HSBC’s index of Chinese manufacturing activity ticked up for the first time the key 50 level in four months in August, aligned with last week’s flash reading. Japan’s Nikkei rose by 1.4%, Australia’s S&P ASX 200 recorded a three months high while the Shanghai Composite index and South Korea’s Kospi both ended flat.

US market ended on a negative note on the last trading day of August, with the Dow Jones Industrial Average and SNP 500 recording their worst monthly declines since last year, as market postponed making large bets in front of a long holiday weekend amid increasing uncertainties over Syria. US President Barack Obama commented that he will ask Congress members to support his plan for a military strike on Syria. Congress leaders have decided to discuss military action against the Middle Eastern country after lawmakers come back from their break on September 9. During the last week Britain’s parliament rejected a planned strike.

Among major movers in the index, basic European resources sector was up by 2.5% based on upbeat Chinese data, Anglo American and Vedanta Resources both rose by around 3.5%. Vodafone rose as much as 4.6% due to deal to sell its 45% shares of Verizon wireless. The deal also flashed buzz that Telecom Italia can also be part of a sector merger wave, though no comprehensive buyer has been confirmed, Stocks were up by 5.85%. US stock markets are closed today, due to Labor Day.

Germany’s DAX 30 index gained 1.53% to 8,226.25, while France’s CAC 40 index also up by 1.53% to 3,993.99.

The Bond Market, Treasuries recorded heavy gains last week as the risk of a conflict with Syria flashed a safety bid. Contributing to the last week’s gains was a diverse lot of economic lead which saw durable orders (-7.3% actual vs. -5.0% expected) and pending home sales (-1.3% actual vs. 0.2% expected) while Gross Domestic Product Second Estimate (2.5% actual v. 2.1% expected) and Michigan Sentiment – Final (82.1 actual v. 80.0 expected) beat. The diverse lead continued to stimulate the contest as to whether or not the Fed will commence tapering its bond buying program at the September meeting. Last week’s gains were paced by the long bond as purchasing pressed its yield down 13 bps to 3.676%. While the 10 year yield lost 8 bps on the week ending near 2.750%. The 5 year yield hold-up as marginal buying made for just a 3 bps fall to 1.601%.

Metal Futures are trading mixed today, with Silver being the top gainer with 2.77% gain to 24.165. Gold continued its losses to a third session on today morning, declining over 1% in early Asian market hours as US President Barack Obama decides to seek Congress members to support his plan for a military strike on Syria. However currently gold set offs its earlier losses and down by 0.1% to 1394.10. Platinum is also down marginally by 0.04% at 1526.50; Palladium is up by 0.50% to 727.50, whereas copper gained 1.84% to 3.2925.

At the Energy Complex, Brent futures declined more than a dollar to a one week low under $ 113 today; with supply interruption uncertainties receding as a military strike against Syria about to happen. Currently Brent crude future for October is trading at 113.54 a barrel. WTI Crude for October delivery is down 0.95% to 106.63/barrel. Heating Oil for October delivery is also down 0.34% to 3.13. Natural Gas September future is the only gainer with 1.98% up to 3.65.

Headlines
 European stocks were trading higher today morning as Vodafone deals to sell its 45% shares of Verizon wireless and the US holds up a probable military strike against Syria, reassuring market fears over another Middle Eastern conflict.
 Asian indexes commenced September higher after two different upbeat data of Chinese factory activity reassured hopes of a recovery in the world’s second largest economy.
 US market ended on a negative note on the last trading day of August, with the Dow Jones Industrial Average and SNP 500 recording their worst monthly declines since last year, as market postponed making large bets in front of a long holiday weekend amid increasing uncertainties over Syria.

Major Data Releases

 CHY NBS Manufacturing PMI (Aug) Actual 51.0 vs. Expected 50.6 (Prev. 50.3) – The Manufacturing Purchasing Managers Index (PMI) released by the China Federation of Logistics and Purchasing (CFLP) studies business conditions in the Chinese manufacturing sector. Any reading above 50 signals expansion, while a reading under 50 shows contraction. As the Chinese economy has influence on the global economy, this economic indicator would have an impact on the Forex market.
 AUD AiG Performance of Mfg Index (Aug) Actual 46.4 (Prev. 42)
 JPY Capital Spending Q2 Actual 0.0% vs. Expected -2.0% (Prev. -3.9%)
 AUD Building Permits (YoY) (Jul) Actual 28.3% (Prev. -11.8%)
 CHY HSBC Manufacturing PMI (Aug) Actual 50.1 vs. Expected 50.2 (Prev. 47.7)
 GER Markit Manufacturing PMI (Aug) Actual 51.8 vs. Expected 52.0 (Prev. 50.7)
 EUR Markit Manufacturing PMI (Aug) Actual 51.4 vs. Expected 51.3 (Prev. 50.3)
 GBP Markit Manufacturing PMI (Aug) Actual 57.2 vs. Expected 55.0 (Prev. 54.6)

About Ziad Melhem

Ziad Melhem
Ziad Melhem is the Admin of Forex.com.lb with more than 10 years of experience in the local and regional "financial wheel". With vast experience in equities, capital markets, foreign exchange, derivatives, technical analysis, and financial services, he is one of the pioneers in online trading when this financial product was first introduced to Lebanon around 2000-2001. Ziad is currently the CMO of Amana Capital Group (www.amanacapital.com).

Comments are closed.

amanacapital.com
Skip to toolbar