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Futures Markets Update for Today Tuesday, 3 September 2013.

European markets were trading marginally higher in today’s morning session as stocks of mobile device manufacturer Nokia surged 46% after Microsoft confirmed it will purchase the Finnish firm’s mobile business for $7.2B. The FTSE 300 Index gained in a choppy morning session. After a broad rally yesterday in all the sectors, technology stocks lead the gains today, gained by over 3%. Along with Microsoft, Alcatel Lucent also up by 7% and STMicro which has Nokia as a client gained 3.35%. European market moved forward, after the Stoxx 600 Index gained the most in two months, as market waits for US manufacturing data. US index futures and Asian shares advanced too.

Asian market were higher today for the continuous fourth day lead by Japan’s benchmark index Nikkei crossed 13,900 mark; as USD-JPY pair crossed the key 100 level while stronger than expected manufacturing print in Europe and China raise confidence in the global economic recovery. Nikkei surged 3%, Australia’s S&P ASX 200 recorded a new three and a half month high, South Korea’s Kospi also posted one month high and the Shanghai Composite gained to a two and a half week high. Chinese Premier Li Keqiang quoted he’s sure that the nation will accomplish the year’s economic goals, indicating China will meet its 7.5% growth target. As US markets were closed for the Labour Day holiday yesterday, Asian traders took trading cues from an optimistic European handover.

US Stocks gained and SNP 500 Stock Index futures increased, indicating the gauge will bounce back from its worst month over a year, as takeovers strengthened market confidence. The Japanese yen depreciated and Treasury Bills declined previous to the release of US manufacturing data. The MSCI All Country World Index added 0.3% to 367.11. SNP 500 futures surged by 1% after yesterday’s Labour Day holiday in the US. The yield on 10 year Treasury notes jumped four basis points to 2.83%.

Bond Futures gained solidly this week as the concern of a strike on Syria sparked a safety bid. Also this week’s gains were contributed by a mixed batch of economic data that saw durable orders (-7.3% actual v. -5.0% expected) and pending home sales (-1.3% actual v. 0.2% expected) miss while GDP – Second Estimate (2.5% actual v. 2.1% expected) and Michigan Sentiment – Final (82.1 actual v. 80.0 expected) beat. The mixed data continues to fuel the argument as to whether or not the Fed will begin winding down its bond purchase program after the September meeting.

Metal Futures are trading mixed with Silver being the top gainer which is up 3.20% at 24.265. While the Gold was down for the fourth continuous day as a delay in a possible U.S. military strike on Syrian Government and also strong global economic data hurt Gold’s safe haven appeal. The gold loses 0.23% to 1392.90 in today’s session. Copper was up 1.52% at 3.282 while Platinum was down 0.07% to 1526.10. And Palladium is also down 0.68% to 718.90.

At the Energy Complex, Brent futures edged higher on Tuesday despite worries over a military strike on Syria eased, and held above $114 a barrel as traders focused on prospects of a recovery in demand growth with factory output across most of the world improving. Brent Crude for October delivery is trading up 0.39% at 114.78. While the WTI crude (Oct’ 13) is trading down 0.37% at 107.25. Heating Oil (Oct’ 13) futures is also up 0.62% at 3.16. And Natural Gas (Oct’ 13) futures are up 2.40% at 3.67.

Headlines

  • European markets were trading higher in today’s morning session as stocks of mobile device manufacturer Nokia surged 46% after Microsoft confirmed it will purchase the firm’s mobile business for $7.2B.
  • Asian market gained today for the continuous fourth day lead by Japan’s benchmark index Nikkei as USD-JPY pair crossed the key 100 level while stronger than expected manufacturing lead in Europe and China raise confidence in the global economic recovery.
  • US Stocks gained and SNP 500 Stock Index futures increased, indicating the gauge will bounce back from its worst month over a year, as takeovers strengthened market confidence.
  • US markets were closed yesterday due to Labour Day, The ICE dollar index a measure to track the US currency against its six major rivals, continued its yesterday’s gains, increasing to 82.258 from 82.118. The WSJ Dollar Index was at 74.49, up from 74.40 yesterday.

Major Data Releases

  • CHY Non-manufacturing PMI (Aug) Actual 53.9 (Prev. 54.1)
  • AUD RBA Interest Rate Decision Actual 2.5% vs. Expected 2.5% (Prev. 2.5%) – RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish
  • CHF Gross Domestic Product s.a. (QoQ) (Q2) Actual 0.5% vs. Expected 0.3% (Prev. 0.6%)
  • CHF Gross Domestic Product (YoY) (Q2) Actual 2.5% vs. Expected 1.7% (Prev. 1.2%)
  • GBP PMI Construction (Aug) Actual 59.1 vs. Expected 56.8 (Prev. 57.0)
  • EUR Producer Price Index (YoY) (Jul) Actual 0.2% vs. Expected 0.1% (Prev. 0.3%)
  • 1258GMT USD Markit Manufacturing PMI (Aug) Expected 54.0 (Prev. 53.7)
  • 1400GMT USD Construction Spending (MoM) (Jul) Expected 0.3% (Prev. -0.6%)
  • 1400GMT USD ISM Manufacturing PMI (Aug) Expected 54.5 (Prev. 55.4) – The Institute for Supply Management (ISM) Manufacturing Index shows business conditions in the US manufacturing sector It is a significant indicator of the overall economic condition in US. A result above 50 is seen as positive (or bullish) for the USD, whereas a result below 50 is seen as negative (or bearish).
  • 1400GMT USD ISM Prices Paid (Aug) Expected 52 (Prev. 49)

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).

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