- The Asia equity market ex-Japan are looking at their lowest levels since July last year.
- Tech sector as a whole was hit by a drop in chip stocks yesterday as well as a knock to social media.
- Investors are cautious that new U.S. tariffs on China could come into play at any time.
- Yen and Swiss franc are looking to be bid up for those looking at safe harbours.
- Non-farm payrolls are out later today.
Asian overnight: Yet again trade concerns weighed on Asian markets, with the Hang Seng posting its worst week since February. Tech stocks remain under pressure in both the US and China, with the momentum trade in the Nasdaq seeing a stark turnaround. A rise in US gasoline reserves hit oil prices and helped drive energy stocks lower.
UK, US and Europe: Yesterday’s ADP numbers were weaker than forecast, so there will be some nervousness among dollar bulls ahead of NFPs this afternoon, while before this we have eurozone GDP figures. Trade war concerns remain front and centre, as the US and China ramp up the tensions.
Economic calendar - key events and forecast (times in BST)
Source: Daily FX Economic Calendar
10am – eurozone GDP (Q2): expected to be 0.4% QoQ and 2.2% YoY, from 0.4% and 2.5% respectively. Market to watch: EUR crosses
1.30pm – US non-farm payrolls (August): NFPs expected to come in at 187K from 157K, while the unemployment rate holds at 3.9%. Average hourly earnings to be 0.3% MoM, in line with last month. Markets to watch: US indices, USD crosses
1.30pm – Canada employment data (August): 15,900 jobs forecast to have been created, from 54,100 a month earlier. Market to watch: CAD crosses
Corporate News, Upgrades and Downgrades
- Playtech said that it has sold its 10% stake in Plus500 for £176 million. The proceeds will be used or general corporate purposes and to reduce net debt.
- AstraZeneca said that the FDA had granted a breakthrough therapy label for its asthma treatment.
Aixtron upgraded to hold at Baader Helvea
BioMerieux upgraded to buy at Kepler Cheuvreux
Equinor upgraded to buy at SEB Equities
Idorsia upgraded to hold at Berenberg
Burberry cut to neutral at Goldman
MorphoSys downgraded to hold at Berenberg
Safran downgraded to hold at SocGen
Shire downgraded to hold at Berenberg
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