A strange familiarity with last month meltdown? [Video]
|US equities remained under pressure yesterday after the JOLTS report revealed that the US job openings unexpectedly fell further in July to the lowest level since 2021. The US yields, the dollar and most major equity indices fell. On the other hand, the USDJPY dropped to the lowest levels since the beginning of August as the Bank of Japan (BoJ) Governor Ueda added more fuel to fire saying that the bank will continue to raise the borrowing costs if needed.
So you understood, we are living a situation of deja vu: rising dovish Federal Reserve (Fed) expectations combined with rising hawkish BoJ bets result in a movement of capital out of the risk of equities, and a flight into the safety of the Japanese yen. But this time around, the price action is not triggered by the actual data, but by the fear of seeing a second month of disappointment in the US jobs data.
Today, eyes are on the ADP report. The official jobs data is due tomorrow. While waiting, we will also be watching the ISM figures, Broadcom earnings and the weekly crude oil inventories report. US crude slipped below $70pb yesterday despite OPEC’s earnings that they could step back on their plan to increase production next month.
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