Markets in a Flash
· The USD is looking weak this morning as China see’s problems with US recovery.
· The JPY has started to look slightly stronger in the past few hours and is gaining against the USD and the EUR.
· US equity futures are lower today suggesting the selloff will continue when the markets open.
· Oil is trading just below the $86.00 mark while Gold is pushing higher to around $1225.00.
· Chinese markets were up overnight while Japanese markets fell as investors sold.
· European equity markets started the day positive but have turned negative as trading has continued.
News focus
China set to be world’s second largest economy
GDP data from Japan showed that their economy grew by an annualized rate of only 0.4% in the second quarter of this year. Economists had expected the data released to show a figure of 2.3%. In the second quarter of this year Chinas Gross Domestic Product was 3.8% high than Japans. As China continues to grow rapidly throughout this year it is expected that by the year end China will be official the second largest economy. The news that the Japanese economy has not grown at the rate it was expected too has sent bearish forces through the markets today. Equity markets are lower as investors think the world’s recovery is going to be hindered by a double dip.
Just Released
0830ET – Empire State Mfg Survey
General Business Conditions Index
Previous -0.1% Consensus 8.0
Consensus Range 6.5 TO 10.0 Actual 7.10
The New York Fed conducts this monthly survey of manufacturers in New York State. Participants from across the state represent a variety of industries. On the first of each month, the same pool of roughly 175 manufacturing executives (usually the CEO or the president) is sent a questionnaire to report the change in an assortment of indicators from the previous month. Respondents also give their views about the likely direction of these same indicators six months ahead.
09:00ET – Treasury International Capital
Previous $35.4 B Actual $44.4 B
These Treasury data track the flows of financial instruments into and out of the United States. Instruments tracked include Treasury securities, agency securities, corporate bonds, and corporate equities.
Coming up Today
10:00ET – Housing Market Index
Previous 14 Forecast 15
The National Association of Home Builders produces a housing market index based on a survey in which respondents from this organization are asked to rate the general economy and housing market conditions. The housing market index is a weighted average of separate diffusion indexes: present sales of new homes, sale of new homes expected in the next six months, and traffic of prospective buyers in new homes.