Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Stocks Steady Amid ADP Payrolls, Mergers, GDP Reports

Published 2016-08-31, 08:08 a/m
Updated 2021-08-03, 11:15 a/m

World stock markets have been mixed overnight. US index futures are down slightly this morning, while across the pond, the FTSE and DAX are down 0.2% while the CAC, IBEX and FTSE MIB are all up about 0.5%. Overnight, Japanese economic figures were mixed while German retail sales disappointed badly.

USD performance has been mixed overnight. JPY remains broadly under pressure following more dovish talk out of the Bank of Japan on asset purchases. GBP, meanwhile has resumed its upswing on the back of stronger-than-expected UK house prices, further evidence the Chorus of Brexit Doom was dead wrong.

CAD is holding steady today ahead of Canadian GDP figures for June and for Q2. Although some may look to‎ this for indications of whether the Bank of Canada may need to cut interest rates this year, because of the potential for distortion from the Fort McMurray wildfire, we could be in for a surprise that may be hard to read. Indications of whether or not we see a summer economic rebound may be more important to the Bank of Canada.

Agrium (TO:AGU) and Potash (TO:POT) may be active again today on deal speculation after the fertilizer giants confirmed they are in merger discussions. ‎Banks may also attract attention today, with National Bank continuing a stellar earnings season for the group, reporting EPS of $1.33 well above the $1.20 the street was expecting.

After a day of focusing on corporate news, Fed speculation may come back into the forefront today. ‎ Earlier this morning, Boston Fed President Rosengren, a voter this year, spoke in China indicating that with the US approaching unemployment and inflation targets, the pace of rate hikes should be accelerated.

Chicago Fed President Evans, a voter next year, remained dovish. Today's ADP payrolls along with tomorrow's manufacturing PMI and Friday's nonfarm payrolls may help to determine whether the Fed raises rates in September, December or both.

Oil may also attract some attention later in the morning. WTI has been trading lower overnight after a 0.9 mmbbl increase in API inventories. Saudi Arabia indicated it is producing to meet demand and doesn't plan to max out capacity. That could be taken positively, that they may be willing to cap production ad upcoming talks, or negatively, that they still have more capacity to keep the supply market share war going if they want to.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.