Market Focus: Last Trading Day of September
It is the last trading day of the month. Major US Indices are poised to post solid gains for the month and the third quarter today, Friday, as Investors remain largely upbeat about the health of the US Economy and American companies. The Dow Industrials are up 2% so far in September, and are on track to log an eighth consecutive quarterly gain.
Oil prices slipped on Thursday, backing off from recent gains that were spurred by tension around Northern Iraq following the Kurdistan region’s vote in favor of Independence. Gold touched a six-week low. European Indices closed in mixed directions but the UK’s benchmark FTSE 100 closed up by 0.1%.
Businesses and Households across the EuroZone were more upbeat about their prospects than at any time in over a decade during September, an indication that they are undaunted by the prospect of reduced stimulus from the European Central Bank next year.
The European Union’s Chief Brexit Negotiator warned it could still be months before enough progress is made in talks with the UK for the Bloc to be ready to discuss a future trade relationship with Britain. However, according to Wall Street Journal, Michel Barnier and the UK’s Brexit Secretary David Davis said progress had been made in the fourth round of talks.
Euro strengthened against the Dollar by the Closing Bell Thursday, as the Dollar eased after Investors took profits on the Dollar’s rally. Sterling also strengthened, after Britain’s Brexit Secretary said “considerable progress” had been made in talks and the EU’s Chief Negotiator praised Prime Minister May, citing a “new dynamic”, in approach. The Canadian Dollar strengthened after the recent Dollar rally, as Investors weigh the US Economic Data and prospects for a US Tax Reform. The Australian Dollar edged slightly higher.
Today is heavy with Data and we hear from 2 major Central Banks; the European Central Bank [ECB] and the Bank of England [BoE].
Potential Catalysts
HIGH IMPACT
07:55 AM GMT Germany Jobs Report (September)
08:30 AM GMT UK Gross Domestic Product (Q2:2017 Final)
09:00 AM GMT EuroZone Harmonized Index of Consumer Prices (September Flash)
12:30 PM GMT Canada Monthly Gross Domestic Product (July)
02:15 PM GMT ECB President, Mario Draghi Speaks
02:45 PM GMT BoE Governor, Mike Carney Speaks
01:00 AM GMT (Sat.) China Manufacturing PMI (September)
01:45 AM GMT (Sat.) Caixin Manufacturing PMI (September)
MEDIUM IMPACT
06:45 AM GMT France Consumer Spending on Manufactured Goods (August)
12:30 PM GMT Canada Raw Materials Price Index (August)
12:30 PM GMT US Consumer Spending
Consensus Forecast, Month-to-Month Change: 0.1%
Consensus Range: -0.2% to 0.3%
12:30 PM GMT US PCE Price Index
Consensus Forecast, Month-to-Month Change: 0.3%
Consensus Range: 0.2% to 0.4%
12:30 PM GMT US PCE Price Index
Consensus Forecast, Year-on-Year Change: 1.5%
Consensus Range: 1.4% to 1.6%
12:30 PM GMT US Core PCE Price Index
Consensus Forecast, Month-to-Month Change: 0.2%
Consensus Range: 0.1% to 0.3%
12:30 PM GMT US Core PCE Price Index
Consensus Forecast, Year-on-Year Change: 1.4%
Consensus Range: 1.4% to 1.7%
01:45 PM ET Chicago PMI for September
Consensus Forecast: 58.6
Consensus Range: 55.0 to 60.0
02:00 PM ET Michigan Consumer Sentiment Index (September Final)
Consensus Forecast: 95.3
Consensus Range: 94.5 to 96.0
