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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Market Brief Worst Manufacturing PMI in a Decade Slams Risk Appetite

Article By: ,  Head of Market Research
October 1, 2019 5:05 PM

Market Brief: Worst Manufacturing PMI in a Decade Slams Risk Appetite
  • FX: The safe haven Swiss franc was the strongest major currency on the day, while the risk-sensitive Australian and New Zealand dollars were the weakest. AUD/USD dropped to its lowest level since March 2009, the depths of the Great Financial Crisis, before recovering a bit intraday.
  • Reports initially suggested that the EU was willing to consider a time-limited backstop on the Irish border, but an EU spokesperson subsequently denied the speculation.
  • US data: The September ISM Manufacturing PMI report came in at just 47.8, below both the 50.0 reading expected and last month’s 49.1 print; this represents a 10-year low in the key economic gauge. The details of the report weren’t any better, with employment falling to 46.3 and new export orders dropping to just 41.0.
  • Commodities: Gold gained nearly 1% on the day. Oil ticked lower.
 
  • US indices closed roughly -1% lower across the board after the weak Manufacturing PMI report.
  • All eleven major sectors fell on the day. Defensive Utilities (XLU) fell the least, while the manufacturing-heavy Industrial (XLI) sector fell by the most, over -2%.
  • Stocks on the move:
    • Online brokers including TD Ameritrade (AMTD, -26%) and E-Trade Financial (ETFC, -16%) were clobbered after rival Charles Schwab (SCHW, -9%) announced it would end commissions for online stock, ETF, and options trades.
    • Two of 2019’s biggest IPOs, Uber (UBER, -4%) and Lyft (LYFT, -4%) both hit fresh record lows today as selling pressure mounts.
    • Ford Motor Company (F) fell -3% after booking an impairment charge of $800-900M related to a sale of its assets to an Indian automaker.

*No high-impact macroeconomic events are scheduled for release in Wednesday’s Asian session.*


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