Market Brief Consolidation ahead of PMIs

The US dollar held steady after the slightly-less dovish than expected FOMC minutes, although volatility remains subdued ahead of key PMI data from Europe and US and, of course, Jackson Hole Symposium tomorrow.
JPY is the strongest major, NZD and AUD are the weakest.
USD/CNY nudges its way to a fresh high of 7.073, although USD/CNH (the offshore counterpart) remains beneath cycle highs.
Macron said that a no-Brexit deal would be Britain’s fault, adding that Boris Jonson’s demands for a renegotiation were not workable.
Australia’s composite PMI contracted for the first time in 5-months, with services and construction weighing the broader read down. Manufacturing expanded by 51.3 to break a 1-month hiatus within contraction mode (below 50).
Japan’s manufacturing PMI contracted for a 4th consecutive month, up slightly from 49.4 in July. New orders were also weaker.

Ahead of the European opening session, Asian stock markets are trading in a mix fashion despite a positive close seen in the key U.S. benchmark stock indices yesterday; both the S&P 500 and Nasdaq 100 have gained by 0.82% and 0.90% respectively.
Market participants now wait for Fed Chair Powell’s speech on Friday, 23 Aug during the Jackson Hole Symposium at 1400 GMT for clues on the Fed’s latest guidance on its monetary policy after yesterday’s release of the previous FOMC minutes that has indicated a diverse set of views from Fed officials.
The underperformer as at today’s Asian mid-session is Hong Kong’s Hang Seng Index where it has shed -0.98%. Key property developer stocks are the main drag on the HSI; Sun Hung Kai Properties and Henderson Land Development have tumbled by -2.15% and -3.74% respectively.
After a dismal performance seen yesterday on Australia’s ASX 200, the Index has managed to recover some lost ground by inching up 0.35% supported by the energy sector through better than expected earnings results from Origin Energy and Santos.
The S&P 500 E-mini futures is showing some profit-taking activities at this juncture where it has inched down by -0.14% in today’s Asia session to print a current intraday low of 2926.
Similar performance can also be seen on the FTSE 100 and German DAX CFD futures; both are showing losses of around -0.40%.

Up next

Germany Markit Manufacturing & Services PMI for Aug out at 0730 GMT
Eurozone Markit Manufacturing & Services PMI for Aug out at 0800 GMT
U.S. Markit Manufacturing & Services PMI for Aug out at 1345 GMT
A weaker than expected PMI data is likely to increase the impetus for ECB and Fed to implement more easing policies.

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.