Spreadex Market Update
ADP non-farm disappoints, but ISM non-manufacturing PMI at 11 year high
The headline figure was the ADP non-farm employment change, which came in 31k lower than expected at 185k, bringing with it a 8k revision of the previous month’s number down to 229k. Similarly, the US trade balance figure widened unexpectedly, losing whatever goodwill it would have gained from the upward revision for June. However, the ISM non-manufacturing PMI smashed expectorations, reaching its highest level since 2004.
The ISM report contained impressive growth for its business activity and employment components, complicating yet another messy afternoon for US data. Just as the doves were ready to call for a December lift-off (something the Dow Jones took to heart after the bell as it rapidly approached 3 digit gains), that ISM figure once again muddies the rate-hike waters. Of course, all of this chatter is somewhat premature given that the government released non-farm figure isn’t out until the end of the week; however, it shows that just when the Fed’s path is looking clear(ish) another potential obstacle jumps in the road. Perhaps it’s time for some Fed firmness, rate-hike or no rate-hike.
The strong US open helped lift the DAX and CAC even higher this afternoon, surging to a 2 week high in the process. The Eurozone is light on data tomorrow, but will, as always, be on the lookout for a waft of Greek news. Today saw Tsipras claim that a deal agreement was in the ‘final stretch’ whilst a spokesperson said elections were ‘likely’ in the autumn. So, nothing particularly market-shaking, but with a long way left to go until that August 20th deadline.
The FTSE finally looked like it wanted to stay above 6700 this afternoon, with the healthy US open and hearty recovery in its oil and mining stocks leading the UK index to nearly a percent in gains. Tomorrow is a biggie for the FTSE; it’s the first ‘Super Thursday’, i.e. the first time the Bank of England has released its Monetary Policy Committee votes, meeting minutes AND quarterly inflation report all on the same day. Whilst no-one is expecting a sudden rate-hike, a few more hawkish voices should pop up in the meeting minutes, with the voting landscape likely to be 2-0-7 instead of the familiar 0-0-9.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
