As we step into the first trading day of September, markets are kicking off the month with a mix of caution and anticipation. With summer behind us, investors are shifting their focus to key economic data releases and potential market-moving events that could set the tone for the weeks ahead.
KEY INDICATORS
Labour Day observance
- US financial markets were closed today in observance of Labour Day, resulting in a quiet day for trading.
- However, global markets remained active, with investors around the world reacting to recent economic developments and positioning themselves for the return of US markets tomorrow.
Global markets react to economic data
- Even with the US markets closed, global markets provided some direction. In Europe, stocks edged higher on the back of stronger-than-expected manufacturing data, which suggested that the region’s economic slowdown might not be as severe as feared.
- Meanwhile, in Asia, markets were mixed, with Chinese stocks under pressure due to ongoing concerns about the country’s economic health, highlighted by weaker-than-expected trade data.
MARKET MOVERS
EUR/CHF
GBP/USD
EUR/GBP
TODAY’S NEWS HEADLINES
ECB to deliver second rate cut in September
- The European Central Bank meets again later this month, and Goldman Sachs (NYSE:GS) expects the central bank to ease monetary policy once more having started its rate-cutting cycle in June.
- Forward-looking indicators and comments from some ECB officials suggest a small downgrade to near-term growth, which would take 2024 and 2025 growth down -0.1pp each to 0.8% and 1.3%, respectively.
UK manufacturing PMI hits 26-month high in August on rising domestic demand
- The Manufacturing Purchasing Managers’ Index (PMI) stood at 52.5, unchanged from the preliminary estimate and up from 52.1 in July.
- The PMI in the UK remained at 52.5 in August, up from 52.1 in July, marking its highest level in over two years. This indicates a period of recovery for the sector, buoyed by a significant increase in domestic orders.
- This is the highest level in 26 months, primarily driven by strong domestic demand that offset weaknesses in export markets.
Stocks close higher Friday, S&P 500 posts fourth straight winning month
- Stocks rose on Friday, with the Dow Jones Industrial Average posting a fresh record high as investors ended a volatile month on a high note.
- The 30-stock Dow jumped 228.03 points, or 0.55%, to close at 41,563.08.
- The S&P 500 advanced 1.01%, closing at 5,648.40.
- The tech-heavy Nasdaq Composite gained 1.13% to end at 17,713.62.
- The personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, rose 0.2% on a monthly basis in July and 2.5% from a year ago.
Click here to open account and start trading.
