- Asian stocks were mixed yesterday with no lead from US session and continued concerns over trade tensions.
- Argentina announces new fiscal policy, while Turkey's central bank hints towards a rate hike.
- WTI trades higher as two rigs off the Gulf of Mexico are evacuated ahead of hurricane.
- Brent loses ground as India allows state refiners to import Iranian oil.
- RBA holds rates steady at 1.5%.
Asian overnight: A mixed session overnight has seen substantial gains in China and Hong Kong counteracted by weakness in Japanese and Australian markets. With a lack of US influence given the Labor day holidays, the one big event of note came from Australia, with the RBA keeping rates steady as expected.
UK, US and Europe: Looking ahead, the pound will remain in focus, with the construction PMI following up on yesterday’s weak manufacturing figure. Also keep an eye out for the inflation report hearings in the afternoon. Yesterday’s closures in the US and Canada has shifted the release of PMI readings to this afternoon, with the Canadian manufacturing PMI preceding the US ISM manufacturing PMI survey.
Economic calendar - key events and forecast (times in BST)
Source: Daily FX Economic Calendar
9.30am – UK construction PMI (August): forecast to fall to 52.8 from 55.8. Market to watch: GBP crosses
3pm – US ISM mfg PMI (August): expected to fall to 57.7 from 58.1. Markets to watch: US indices, USD crosses
Corporate News, Upgrades and Downgrades
- DS Smith said that it had seen ‘good’ like-for-like volume growth in the financial year so far, with ingoing margin improvement. So far, trading remained in line with expectations.
- Redrow reported a 21% rise in full-year pre-tax profit, to £380 million, adding that demand remained ‘robust’ despite Brexit.
- WPP reported a 7% fall in headline pre-tax profit, to £821 million for the first half, while overall diluted EPS were up 14.6% to 53.4p per share. The firm said that it intends to update shareholders on strategy before the end of the year.
CaixaBank Upgraded to Outperform at RBC
Lloyds Banking Group Upgraded to Hold at Berenberg
Bpost Rated New Buy at Berenberg
Inmarsat Downgraded to Sector Perform at RBC
Stef Downgraded to Neutral at Oddo BHF
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