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Market View

Asian Stocks Continue to Fall

Monday, August 31, 2015 12:43 PM GMT

 

- US equities post Friday's close: Dow Jones Industrial 16643.01 (-0.07%), S&P 500 1988.87 (+0.06%), NASDAQ 4828.32 (+0.32%).

- New Zealand Prime Minister John Key: ''economy well-paced to handle global ups, downs. Also, he added that economy faces headwinds from dairy and China outlook, economy will still expand at about 2% pace. Finally, he pointed out that aiming for low cost and flexible economy.'' (Source: CNBC)

 - Ex-PBoC Adviser Li Daokui: China trade surplus to be 5%-6% of GDP this year. China still has room to cut interest rates. (Source: DailyFX)

- Asian shares fell on Monday and looked set for their worst monthly performance in three years after top Federal Reserve officials kept the door open for an interest rate hike in September and Chinese stock markets took a fresh tumble. Global markets are bracing for Chinese data on Tuesday which is expected to show the world's second-largest economy is continuing to lose momentum. A Reuters poll showed China's official factory sector activity likely fell to a 3-year low. (Source: Reuters)

- Positive market environment was for a military parade of the 70th anniversary of Chinese war of resistance against Japan. (Source: Financial Times)

-Oil, Copper Drop as China Jitters Linger. Gold Muted amid Macro Events.  (Source: Yahoo!Finance )

- An unofficial monthly measure of inflation shows that consumer prices moderated from July to August. The TD Securities - Melbourne Institute Monthly Inflation Gauge rose by 0.1 per cent in August, following an increase of 0.2 per cent in July. In the year to August, the Inflation Gauge increased by 1.7 per cent. The core inflation figure — which excludes price movements for volatile items — increased by 0.2 per cent in the month, with the annual rate standing at 2 per cent. (Source: Yahoo!Finance )

- Central bankers from around the world are telling their American counterparts that they are ready for a U.S. interest rate hike and would prefer that the Federal Reserve make the move without further ado. In private and in public at last week's global central banking conference in Jackson Hole, the message from visiting policymakers was that the Fed has telegraphed an initial monetary tightening and, following a year-long rise in the dollar, financial markets globally are as ready as they can be. (Source: Reuters)

- Roller coaster does not begin to describe the week that EUR/USD underwent. A leap to highs unseen in months continued with big fall. Volatility is set to continue as traders return to their desks and the ECB makes its statement. Apart from Draghi we also have employment, inflation and PMI data...'' The point 1.1215, which capped the pair both in June and in August, is clear resistance. It is followed by a low seen in January of 1.1113 which is nearly 0.90 on USD/EUR. On the other side, 1.1050 returns to the chart after serving as a stepping stone for the pair to rise to higher ground. 1.0950 is a pivotal line in the range. Finally, the next line is 1.0760, which was the low point in both July and August 2003. 1.0715 joins the chart after temporarily capping the pair in April 2015.'' (Source: ForexCrunch)

- AUD is expected to be the most active major vs USD with 1W implied volatility at 14.20, this may be due to this week's #RBA rate decision. (Source: DailyFX)

- CHF was the best performing major vs USD on Friday with +0.27% spot returns while JPY was the worst performing with -0.56% returns. (Source: StockTwits)

- Euro, Yen Rise as Jackson Hole Outcome Sends Markets Scrambling (Source: DailyFX)

- Today’s Upcoming Events: US PMI, EU CPI, Dallas Fed Index.

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