MORNING BRIEFING: Wall Street suffered closed lower yesterday for the 2nd day in a row as investors await the monthly employment figures for July from

[RTFX-Trading]

MORNING BRIEFING: Wall Street suffered closed lower yesterday for the 2nd day in a row as investors await the monthly employment figures for July from the US, which are scheduled to be published at 14:30 CET.

What’s new?
Euro zone: Interest rates and asset purchasing program remain unchanged.
United Kingdom: Interest rates unchanged, asset purchases plan increased to £175B.
United States: Weekly jobless claims drop more than expected.
Germany: Increase of 4.50% in Factory orders in June.
United Kingdom: New car registrations rise to 2.40% in July.
Japan: Bank of Japan will probably expect 3 years of deflation.
Switzerland: Unemployment rate steady at 3.70% in July.
Switzerland: Consumer confidence at -42 in July.

Today:
08h45 France: Trade Balance June, exp 10.8B, previous 10.3B
10h30 United Kingdom: Producer Price index July, exp -1.60%, previous -1.20%.
12h00 Germany: Industrial Production June, exp 0.70%, previous 3.70%.
14h30 United States: Change in non-farm payrolls July, exp -320'000, previous -467'000.
14h30 United States: Unemployment rate July, exp 9.60%, previous 9.50%.
14h30 United States: Average weekly hours July, exp 33.0h, previous 33.0h.
19h00 United States: Consumer Credit June, exp -4.35B, previous -3.23B.

Overnight Rates and Indices:
EURUSD: 1.4373 – 1.4339.
USDCHF: 1.0669 – 1.0635.
GBPUSD: 1.6811 – 1.6745.
EURJPY: 137.30 – 136.61.
USDJPY: 95.56 – 95.24.
DowJones: 9'256 -0.27%.
NASDAQ: 1’973 -1.00%.
S&P 500: 997 -0.56%.
Nikkei: 10'329 -0.57%.
Gold: $960.90.
Crude Oil: $71.66.
 
Comments:

Wall street suffered its 2nd straight day of losses yesterday as traders are waiting for the employment figures for July to be published this afternoon at 14:30 CET from the US.
   
Yesterday the European Central Bank left its rates unchanged and indicated that they would stay at this rate for some time, as expected. The surprise came from the Bank of England, after they left rates unchanged, they announced that they would increase to £175B their asset purchasing program.

The decline in weekly jobless claims for the week of the 1st of August, paves the way for the US employment figures for July. Economists expect around 320’000 job losses, which would be the best result for non-farm payrolls published in over a year. This could result in a renewed appetite for risk by investors. The unemployment rate is expected at 9.60%.

Good unemployment figures would be bullish for the stock market and the appetite for risk, therefore bullish Australian Dollar, New Zealand Dollar, Pound, Euro and a falling Dollar, Yen and Swiss Franc.

Good Day

Emman Xuereb
RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
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