- UK FTSE 100 +0.4%
- Stoxx 600 +0.4%
- German DAX -0.1%
- French CAC +0.3%
- Italy MIB +0.9%
- Spain IBEX +0.9%
The DAX is trying to base above the July lows.
Latest Posts
rssJapan’s deputy chief Cabinet secretary said that they are monitoring FX moves with a high degree of urgency.
The IfW economic institute foresees a recession and record inflation in Germany for next year.
- Sees the German economy contraction by 0.7% in 2023 (previously predicted growth of 3.3% back in June)
- Sees inflation this year at 8.0% (up from 7.4% previously)
- Sees inflation next year at 8.7% (up from 4.2% previously)
On the forecast revisions, the firm says that “the recent price jumps for electricity and gas will noticeably reduce the purchasing power of private households and lead to a decline in private consumer spending”.
Europe on its way to become an open-air museum in one chart
ECB monetary policy meeting preview – cheat sheet for EUR/USD
The European Central Bank policy meeting is today, Thursday, 8 September 2022
- statement due at 1215 GMT
- with ECB President Lagarde’s press conference following at 1245 GMT
Japan final Q2 GDP +3.5% q/q (annualized) (expected 2.9%)
- estimate 0.7%, previous 0.5%
–
annualised +3.5%
- expected 2.9%, prior 2.2%
–
Private consumption +1.2% q/q
- capex +2.0% (prior 1.4%)
Thought For A Day
Atlanta Fed GDP Now estimate falls to 1.4% from 2.6% previously
Atlanta Fed GDP now growth estimate for 3Q
The Atlanta Fed GDP model for the 3Q now sees growth at 1.4% which is down from 2.6% on September 1.
Disappointing Chinese trade data adds to concerns on global outlook
Those are significant misses on estimates as ongoing COVID-19 restrictions is arguably a key factor weighing on the economy. But as the saying goes: when China sneezes, the world catches a cold.
And the trade numbers from today will add to concerns for the global economy and outlook in the months ahead.
German industrial output, Eurozone final Q2 GDP on the agenda today
It is still all about the dollar right now as we are seeing a further capitulation in the yen and a further decline in the yuan – both of which are fueling further gains in the greenback this week. The US currency is running hot and is higher across the board once more, threatening to break even higher against some of the major currencies this week.
Equities remain sluggish with US stocks falling once more yesterday. Of note, the Nasdaq posted its seventh straight day of losses – its longest streak since November 2016. Meanwhile, bond yields are still pressing higher with European governments looking to pile on more debt in order to deal with the energy crisis ahead of winter.
Looking ahead, trading sentiment will continue to revolve around the key points above but it’s all about watching if the dollar has legs for another run higher as it approaches some key levels on the charts.
0600 GMT – Germany July industrial production data
0600 GMT – UK August Halifax house prices
0900 GMT – Eurozone Q2 final GDP figures
1100 GMT – US MBA mortgage applications w.e. 2 September
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.