Asia Mid-Session Market Update: Japan manufacturing PMI returns to expansion as cabinet officials resume jawboning against Yen strength
Top US session headlines
- (US) AUG EXISTING HOME SALES: 5.33M V 5.45ME
- (US) INITIAL JOBLESS CLAIMS: 252K V 261KE; CONTINUING CLAIMS: 2.11M V 2.14ME (lowest initial jobless claims since April)
- Reportedly no breakthrough reached at OPEC meeting in Vienna ahead of meeting in Algeria next week - press
- (US) TREASURY $11B 10-YEAR TIPS REOPENING DRAW 0.052%; BID TO COVER 2.59 V 2.27 PRIOR AND 2.38 AVG OVER THE LAST 4 (highest BTC since May 2014)
- YHOO: Confirms certain data from 500M user accounts was stolen, including hashed passwords, names and email addresses
Asia Notes/Observations
- Volatility is compressed for the 2nd day and US yield curve flattens as markets process FOMC ripple and settle on 50-50 chance of December hike.
- Nikkei returns from holiday with a down day amid catch-up to Yen bid on BOJ policy change
- Oil pares gains on diminished prospects of Algiers agreement for any supply shift
- NZD still under pressure in the extended wake of more dovish than expected RBNZ; other USD majors in narrow ranges
- Japan PMI surprises to the upside with first expansion in 7 months; Output up for 2nd month and Employment rises to 4-month highs
- Japan Fin Min acknowledges not much impact anticipated from latest BOJ move; Cabinet Sec Suga warns govt watching market moves and Yen direction following BOJ and FOMC
- North Korea Army spokesperson threatens to strike Guam and Seoul if US flies its B-1B bombers over Korea
US markets on close: Dow +0.5%, S&P500 +0.7%, Nasdaq +0.8%
- Best Sector in S&P500: Consumer Discretionary
- Worst Sector in S&P500: Basic Materials
- Biggest gainers: WY +5.7%, RIG +5.6%, DISCA +4.8%, FTR +4.8%, RCL +4.6%
- Biggest losers: EQR -2.5%, SWN -2.3%, LVLT -2.1%, KSS -1.9%, PXD -1.8%
VIX 12.0 (-1.3pts); Treasuries: 2-yr 0.77% (-1bp), 10-yr 1.63% (-4bp), 30-yr 2.35% (-4bp)
US movers afterhours
- MIFI +29.8%; Pact to Sell Mobile Broadband Unit
- BATS +28.5%; CBOE reportedly in discussions to acquire BATS Global - press
- IMPV +16.4%; Said to Draw Acquisition Interest
- AIR +4.8%; 1Q EPS Cont. Operations, Sales Beat Ests.
- FB -1.4%; Said to have overestimated video ads' viewing time by as much as 60-80% for 2 years - financial press
- ENPH -21.0%; Will Cut 11% of Workforce, Offer Stock
After extended session
- GM: Chevrolet to begin offering all-new Equinox SUV model in China - financial press
Equity Futures (23:30ET): S&P e-mini flat, Dax flat, FTSE100 -0.1%
FX/Commodities (23:30ET):
- EUR 1.1195-1.1210; JPY 100.70-101.25; AUD 0.7630-0.7650, NZD 0.7275-0.7315
- Gold -0.2% at 1,338; Oil -1.1% at $45.81/brl; Copper -0.2% at $2.19/lb
- GLD: SPDR Gold Trust ETF daily holdings rise 6.5 tonnes to 950.9 tonnes; Highest since Sept 7th
Asian Equity Markets (23:30ET)
- Nikkei -0.1%, Hang Seng +0.1%, ASX +0.7%, Shanghai -0.1%, Kospi +0.1%
Key economic data:
- (JP) JAPAN SEPT PRELIMINARY PMI MANUFACTURING: 50.3 V 49.5 PRIOR; first expansion in 7 months
- (HK) Macau Aug visitor arrivals: 2.88M, +3.1% y/y
Speakers/Press
China:
- (CN) Former China vice housing minister Qiu Baoxing warns about risk of overheating property sector - Chinese press
- (CN) Moody's: China developers will have stable margins in 2016 v 2015
- (CN) China State Administration of Foreign Exchange (SAFE) official: No basis for long term Yuan depreciation - financial press
Japan:
- (JP) Japan Chief Cabinet Sec Suga: Will continue to watch market moves, fx moves are very sensitive
- (JP) Japan Fin Min Aso: Reiterates Govt and BOJ need to work together on many issues; deflation is the main problem for the economy
- (JP) Japan Business Federation (Keidanren) chief Sakakibara met with China's Commerce Ministry, urging more transparent antitrust process - Nikkei
Asia movers
- China Unicom 762.HK +5.0%; Raised at Goldman Sachs
- Iluka Resources ILU.AU +4.8%; raised to buy from neutral at UBS
- Qube Holdings QUB.AU +4.6%; upgraded to outperform at Macquarie
- Warehouse Groupd WHS.NZ +1.4%: Reports FY16 adj net NZ$64.1M v NZ$57.1M y/y, Rev NZ$2.95B v NZ$2.78B y/y
- Gold miners trade lower on gold prices; Newcrest NCM.AU -2.8%, Evolution Mining EVN.AU -2.6%
- Wynn Macau -3.7%, MGM China -3.0% cut at Credit Suisse
- Dentsu 4324.JP -4.6%: Confirms issues with improper accounting in internet ads, apologizes to customers
- Charter Hall CHC.AU -6.6%; Halt lifted after Gandel Group block sale
- Whitehaven Coal WHC.AU -8.5%; Annual report, CEO pay hike
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.
Editors’ Picks
![EUR/USD stays below 1.1100, looks to post weekly losses](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/european-euro-coin-on-top-of-american-dollar-bill-11292130_XtraSmall.jpg)
EUR/USD stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
![GBP/USD struggles to find a foothold, trades near 1.3150](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-157771037_XtraSmall.jpg)
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
![Gold retreats toward $2,500 ahead of the weekend](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-bars-50657756_XtraSmall.jpg)
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
![Week ahead – Investors brace for NFP amid Fed rate cut speculation](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/america-back-to-work-gm178972493-25143312_XtraSmall.jpg)
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
![Easing Eurozone inflation to back an ECB rate cut in September](https://editorial.fxstreet.com/images/Macroeconomics/Countries/Europe/Eurozone_countries/Eurozone/eu-flags-flying-at-the-european-commission-building-brussels-belgium-24759579_XtraSmall.jpg)
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
RECOMMENDED LESSONS
Making money in forex is easy if you know how the bankers trade!
Discover how to make money in forex is easy if you know how the bankers trade!
5 Forex News Events You Need To Know
In the fast moving world of currency markets, it is extremely important for new traders to know the list of important forex news...
Top 10 Chart Patterns Every Trader Should Know
Chart patterns are one of the most effective trading tools for a trader. They are pure price-action, and form on the basis of underlying buying and...
7 Ways to Avoid Forex Scams
The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?
What Are the 10 Fatal Mistakes Traders Make
Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.