Markets remain rangebound as US markets were closed on Monday for the Labor Day.
The sterling gained against the dollar after a report showed UK manufacturing PMI index rose from 55.9 to reach a three-year peak at 56.3 in August, reinforcing the fact that the UK economy grows steadily.
Besides, the euro zone manufacturing PMI index dropped slightly from 54.9 in July to 54.3 in August, beating the estimate of 54.2 though.
Tuesday, September 4, 2007
Sunday, September 2, 2007
Yen Rallied after Bernanke, Bush Speeches
The yen rallied broadly after Fed Chairman Ben Bernanke and US President George W. bush gave separate speeches with regard to recent credit crunch.
On the central bank’s annual symposium in Wyoming, Bernanke said market turmoil can hit many outside the markets and the Fed policy must take into account. He reiterated that the central bank will act as needed to protect the economy, leaving the door open for an interest rate cut in September. The market is divided on whether the Fed may cut interest rates from 5.25% on its monetary policy meeting on September 18. The dollar gained versus the euro and yen after Bernanke said it’s not the Fed’s job to protect investors from their own financial decision.
Later, Bush gave a speech on how to help homeowners struggling to pay their mortgages. He said there have admittedly been excesses in mortgage supplies. He said new foreclosure avoidance initiative will help avoid repeat of current situation. Also,he is asking Congress for a temporary change in tax code to prevent people from being penalized when they refinance subprime mortgages. However, like Bernanke, he said government’s job is not to bail out speculators. He said the economy is strong enough to withstand any turbulence and recent subprime issues are modest in relationship to the size of the economy.
On the central bank’s annual symposium in Wyoming, Bernanke said market turmoil can hit many outside the markets and the Fed policy must take into account. He reiterated that the central bank will act as needed to protect the economy, leaving the door open for an interest rate cut in September. The market is divided on whether the Fed may cut interest rates from 5.25% on its monetary policy meeting on September 18. The dollar gained versus the euro and yen after Bernanke said it’s not the Fed’s job to protect investors from their own financial decision.
Later, Bush gave a speech on how to help homeowners struggling to pay their mortgages. He said there have admittedly been excesses in mortgage supplies. He said new foreclosure avoidance initiative will help avoid repeat of current situation. Also,he is asking Congress for a temporary change in tax code to prevent people from being penalized when they refinance subprime mortgages. However, like Bernanke, he said government’s job is not to bail out speculators. He said the economy is strong enough to withstand any turbulence and recent subprime issues are modest in relationship to the size of the economy.
Traders Await Data Barrage, Bernanke
At 2:00 AM Germany July Retail Sales m/m (exp 0.5%, prev 1.3%)
Germany July Retail Sales y/y (exp 0.5%, prev 1.3%)
At 5:00 AM Eurozone July Unemployment Rate (exp 6.9%, prev 6.9%)
Eurozone August HICP flash y/y (exp 1.8%, prev 1.8%)
Eurozone August Business Climate (exp 1.3, prev 1.35)
Eurozone August Consumer Sentiment (exp –2.0, prev –2.0)
At 8:30 AM US July Personal Income (exp 0.3%, prev 0.4%)
US July Consumption (exp 0.3%, prev 0.1%)
US July core PCE m/m (exp 0.2%, prev 0.1%)
Canada June GDP m/m (exp 0.0%, prev 0.3%)
Canada June GDP q/q
At 9:45 AM US August Chicago PMI (exp 52.8, prev 53.4)
At 10:00 AM US University of Michigan July Survey (exp 82.7, prev 90.4)
US July Durable Goods Orders
The major currencies are little changed in the early Friday session as traders prepare for a barrage of economic releases as well as a key speech from Fed Chairman Bernanke on housing and monetary policy. Many market participants are looking for Bernanke to signal an imminent rate cut in the Fed funds rate at the next policy meeting on September 18th in light of recent tightening credit conditions and its potential fallout on the US economy. However, the recent cut in the discount rate may buy the Fed some time and enable it to closely monitor the inflationary outlook before shifting policy.
The bevy of US economic reports includes July personal income, consumption, personal consumption expenditures, durable goods orders, University of Michigan sentiment survey and the August Chicago PMI. Personal income for July is forecasted to slip to 0.3%, down slightly from a month prior at 0.4% while consumption is expected to improve to 0.3% versus 0.1% from June. The closely eyed core PCE reading, the Fed’s preferred gauge on inflation, is seen creeping up to 0.2% in July, up from 0.1% from June. Chicago PMI is seen slipping to 52.8 versus 53.4 from July, while the University of Michigan July sentiment survey is estimated to be down considerably to 82.7 from 90.4. Consumer sentiment will be closely monitored as a proxy to how well US consumption holds up in light of recent market turmoil and volatility stemming from the subprime crisis.
Germany July Retail Sales y/y (exp 0.5%, prev 1.3%)
At 5:00 AM Eurozone July Unemployment Rate (exp 6.9%, prev 6.9%)
Eurozone August HICP flash y/y (exp 1.8%, prev 1.8%)
Eurozone August Business Climate (exp 1.3, prev 1.35)
Eurozone August Consumer Sentiment (exp –2.0, prev –2.0)
At 8:30 AM US July Personal Income (exp 0.3%, prev 0.4%)
US July Consumption (exp 0.3%, prev 0.1%)
US July core PCE m/m (exp 0.2%, prev 0.1%)
Canada June GDP m/m (exp 0.0%, prev 0.3%)
Canada June GDP q/q
At 9:45 AM US August Chicago PMI (exp 52.8, prev 53.4)
At 10:00 AM US University of Michigan July Survey (exp 82.7, prev 90.4)
US July Durable Goods Orders
The major currencies are little changed in the early Friday session as traders prepare for a barrage of economic releases as well as a key speech from Fed Chairman Bernanke on housing and monetary policy. Many market participants are looking for Bernanke to signal an imminent rate cut in the Fed funds rate at the next policy meeting on September 18th in light of recent tightening credit conditions and its potential fallout on the US economy. However, the recent cut in the discount rate may buy the Fed some time and enable it to closely monitor the inflationary outlook before shifting policy.
The bevy of US economic reports includes July personal income, consumption, personal consumption expenditures, durable goods orders, University of Michigan sentiment survey and the August Chicago PMI. Personal income for July is forecasted to slip to 0.3%, down slightly from a month prior at 0.4% while consumption is expected to improve to 0.3% versus 0.1% from June. The closely eyed core PCE reading, the Fed’s preferred gauge on inflation, is seen creeping up to 0.2% in July, up from 0.1% from June. Chicago PMI is seen slipping to 52.8 versus 53.4 from July, while the University of Michigan July sentiment survey is estimated to be down considerably to 82.7 from 90.4. Consumer sentiment will be closely monitored as a proxy to how well US consumption holds up in light of recent market turmoil and volatility stemming from the subprime crisis.
Subscribe to:
Posts (Atom)
