Archives of “September 1, 2020” day
rss#Silver supported by #copper strength is once again outperforming #gold. The #XAUXAG ratio has dropped to 69, the lowest since March 2017.
1925 – How I Trade and Invest In Stocks… – Wyckoff. Watching, waiting, executing.
EURUSD trades to highest level since May 2018 and tests 1.2000 in the process
Tests the May 13 week high and 1.2000 today.
Drilling down to the hourly chart, the price move higher today occurred in the Asian session and stalled at the similar high (at 1.19967) during the early European session. That move took the price above a topside trend line but the break failed.
Germany to revise higher 2020 GDP forecast, expect weaker rebound in 2021
Reuters reports, citing two sources familiar with the matter
- 2020 GDP forecast to be revised to -5.8%; previously -6.3%
- 2021 GDP forecast to be revised to +4.4%; previously +5.2%
Eurozone August final manufacturing PMI 51.7 vs 51.7 prelim
Latest data released by Markit – 1 September 2020
“Eurozone factory output rose strongly again in August, providing further encouraging evidence that production will rebound sharply in the third quarter after the collapse seen at the height of the COVID19 pandemic in the second quarter. Business expectations for output in a year’s time also rose to the highest for over two years as prospects continued to brighten from the unprecedented gloom seen earlier in 2020.
“Caution is warranted in assessing the likely production trend, however, as so far it would have been surprising to have seen anything other than a rebound in output and sentiment. Worryingly, order book growth cooled slightly in August, and there are indications that firms are bracing for a near-term weakening of demand.
“Of note, a key theme of the latest survey is one of firms taking a cautious approach to costs and spending, notably in respect to investment and hiring, amid continued worries about the strength of future demand and uncertainty over the course of the pandemic. Producers of investment goods such as plant and machinery reported the weakest order book growth, and job losses remained amongst the most prevalent since the global financial crisis.
“Whilst the drop in payroll numbers was led by Germany, France, Spain and Austria reported a reacceleration of job losses and a return to job cutting was seen in Ireland, sending worrying signals that many firms have become more concerned about the near-term outlook.
“In short, manufacturing is currently being buoyed by a wave of pent up demand, but capacity is being scaled back. The next few months’ data will be allimportant in assessing the sustainability of the upturn.”
Nikkei 225 ends the day flat at 23,138.07
Japanese stocks close pretty much flat on the day
Asian equities are seeing rather muted tones in general, though they are off earlier lows at least but are failing to find much inspiration after the mixed tones in Wall St overnight.
China – Caixin/Markit Manufacturing PMI for August: 53.1 (expected 52.5)
Caixin/Markit Manufacturing PMI for August comes in stronger than expected and up from July at 53.1, 4th consecutive month in expansion
- expected 52.5, prior 52.8
- New export orders a notable improvement, first growth for this year
- Sharpest increases in output and new orders since the start of 2011
- Employment moves closer to stabilisation
- overseas demand started to pick up
- new export orders entered expansionary territory for the first time this year, due mainly to the slowing spread of the pandemic overseas
- Companies were willing to replenish their stocks as demand continued to expand
- Employment remained subdued … employment subindex stayed in negative territory for the eighth consecutive month, but it was the closest to positive territory this year
- backlogs of work expanded at a faster pace than the previous month, which could be seen as a positive signal that a turning point is approaching for employment. Input costs and output prices both rose, albeit at a slower pace