Market Blog > August 2016 > Market Review

Market Review

A number of Bank of Japan board members agreed on the need to examine the impact of negative rates and also expressed concern that prices charged for services are not matching higher costs, according to minutes of the central bank's June meeting released on Wednesday. Growth in China's services sector slowed down in July, with weaker expansions in activity and new work forcing companies to let staff go for first time in four months as they aimed to cut costs, a survey showed on Wednesday.

Euro zone business activity grew a bit faster than expected last month as the region indicated to have largely digested Britain's vote to leave the European Union, a survey found. Activity in the U.K. service sector contracted in July for the first time in more than three years to 47.4 last month from a reading of 52.3 in June.

Service sector activity (PMI) in the U.S. expanded less than expected in July to 55.5 last month from 56.5 in June. Analysts had expected the index to drop to 56.0. U.S. non-farm private employment unexpectedly increased in July, by a seasonally adjusted 179,000, exceeded expectations for an increase of 170,000.

Currencies: The dollar maintained gains against the other major currencies, despite weak U.S. service sector data as an optimistic U.S. jobs report continued to support demand for the greenback. The EURUSD traded lower between $1.1227 and $1.1141. The GBPUSD traded lower between $1.3372 and $1.3281. The USDJPY traded higher between ¥100.75 and ¥101.57.

Crude oil: Oil prices rose near 2 percent on Wednesday, after the U.S. government reported a larger-than-expected gasoline drop that offset a surprise build in crude stockpiles. On the ICE future Exchange, North Sea Brent crude traded higher between $41.58 and $43.44. On the New York Mercantile Exchange, U.S. light crude oil traded higher between $39.33 and $41.16.

Gold: Gold fell from near 28-month highs on Wednesday, as investors expected a highly-anticipated meeting from the Bank of England where policymakers in the U.K. could approve their first interest rate cut in seven years. On the COMEX division of the New York Mercantile Exchange, gold traded lower in a range between $1366.39 and $1354.06 an ounce.

Indices Shares in Asia rose on Wednesday as a powerful state agency in China called for easier monetary policy. At the close in Tokyo, the Nikkei 225 tumbled 1.88%. At the close in China, the Hang Seng dropped 1.79% change.

European stocks were mostly lower on Wednesday, after a fresh batch of corporate earnings reports and after Japan’s stimulus measures announced on Tuesday disappointed markets. At the close in Frankfurt the DAX added 0.26%. At the close in Paris, the CAC40 dropped 0.16%. At the close in Madrid, the IBEX 35 fell 0.17%. Finally, at the close in London the FTSE100 declined 0.17%.

Wall Street traded with slight gains on Wednesday after mixed economic. At the close, the Dow Jones industrial average added 0.20%. The S&P 500 gained 0.20% and the NASDAQ composite rose 0.43%.

Economic Calendar

Thursday 4th August 2016:

Time

Currency

Events

Forecast

Previous

 11:00am

GBP

BOE Inflation Report

 

 

 11:00am

GBP

MPC Official Bank Rate Votes

0-9-0

0-1-8

 11:00am

GBP

Monetary Policy Summary

 

 

 11:00am

GBP

Official Bank Rate

0.25%

0.50%

 11:00am

GBP

Asset Purchase Facility

375B

375B

 11:00am

GBP

MPC Asset Purchase Facility Votes

0-0-9

0-0-9

11:30am

GBP

BOE Gov Carney Speaks

 

 

12:30pm

USD

Unemployment Claims

265K

266K

2:00pm

USD

Factory Orders m/m

-1.80%

-1.00%


 
Posted: 8/4/2016 5:42:19 AM by Global Administrator | with 0 comments


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