March ISM manufacturing index highlights – Prior was 60.8 – Employment 57.3 vs 59.7 prior – Prior prices paid 74.2 – New orders 61.9 vs 64.2 prior The big jump in prices paid is the story. That’s a sudden sign of inflation and will get the attention of a few members of the FOMC.
February US construction spending data – Prior was 0.0% – Private +0.7% – Public -2.1% This will lead to some small downgrades in GDP forecasts.
Dollar higher against euro, pound and the commodity currencies Cable has erased much of its gains as weakness in equity markets leads to a slump. The S&P 500 is trading 16 points lower to 2624 in an acceleration of the selling after futures indicated a 9-point decline.
Minneapolis Fed president Neel Kashkari will be on the mic later today He will be speaking at a student town hall in Duluth, Minnesota on monetary policy and the economy. And there will be a Q&A session with the audience after.
Bloomberg’s latest survey shows that analysts expect USD/JPY to rise to 108 this quarter The reason for such a projection is easing geopolitical tensions that is expected this quarter, which will reduce demand for safe haven assets i.e. JPY.
Another quiet day is expected The only data point I see that will be released is Greece manufacturing PMI for March, and nothing else. Most major markets (UK, Germany, France, Italy, Switzerland – to name a few) are off for the day so it’s going to be a very, very quiet one. Liquidity conditions will…
Some comments by Japanese prime minister Shinzo Abe The labour reform that Abe is trying to pass is that which helps to boost productivity – something that he abandoned at the end of February following flawed data that was used to support the bill.
Over the weekend we got the official PMI surveys: This now is the survey conducted by Markit, which tends to focus on smaller firms and not quite so much on the larger ones, including SEOs.
A negative start to the month for Chinese equities 2 April – SCI down -0.2% at 3163.18 – CS1300 down – 0.3% at 3886.92 Traders/analysts cite ongoing US/China trade war concerns and mixed data readings from the mftg sector with official data showing better than expected by private surveys showing weakest expansion in 4 months…
Latest data released by the Japan Automobile Manufacturers Association – 2 April 2018 The data measures domestic sales of cars, trucks and buses in the country.