Market moving daily news roundup – events & news likely to move markets 22nd August 2019
Company performance, economic and political events but especially market sentiment will always influence market movement, good or bad.
Summary
Economic news calendar 22nd August 2019 main market moving scheduled events
Australia – manufacturing PMI index data due
Japan – Nikkei manufacturing PMI data due
Japan – foreign investment data due
France – manufacturing PMI data due at: 08:15 BST
Germany – manufacturing PMI data due at: 08:30 BST
Germany – service PMI data due at: 08:30 BST
EU – manufacturing and services PMI data due at: 09:00 BST
UK – CBI trades survey report due at: 11:00 BST
EU – ECB monetary policy meeting accounts due at: 12:30 BST
U.S. – jobless claims data (continuing) due at: 13:30 BST
U.S. – manufacturing and services PMI data due at: 14:45 BST
EU – consumer confidence reading due at: 15:00 BST
Jackson Hole central bank forum to open
Note
Items highlighted in red are more likely to move markets, amber and blue less so. Only what I regard as the ‘main’ scheduled events are listed here.
Market moving news roundup, Thursday 22nd August 2019
News update
Will G7 summit end without agreement
Will the G7 summit end without an agreement for the first time in its 44 year history? It highlights the possible deepening rift between heads of state from seven of the world’s largest economies.
Asian stocks
Stocks in Asia generally trade lower. Japan’s Nikkei index closed almost unchanged at: 20628 – up just 10pts on the day. Japan’s manufacturing PMI data reading rose slightly but remains in contraction. But service data PMI reading was stronger and showed expansion. A reading below 50 demonstrates contraction and above is expansion.
Powell speech eagerly awaited
The spotlight will be on the U.S. Federal Reserve Friday, as Fed chair Jerome Powell delivers his eagerly awaited speech at Jackson Hole.
The FOMC meeting minutes released yesterday, showed that two members wanted a 0.50% interest rate cut. A 0.25% rate cut was announced by the FOMC in July. The next meeting is 17th September 2019.
U.S. – Yield curve inverts again Wednesday 21st August 2019, with 2 year Treasury yield briefly going above the 10 year rate.
Largest ‘fracking’ earthquake in Lancashire stops production
Cuadrilla has stopped fracking for shale gas in Lancashire following another earthquake, after only starting the process again a week ago. A recent report has also suggested that there is far less gas to extract than originally thought. I nearly bought into the shale gas ‘explosion’ with all the hype 3-4 years ago. So pleased I resisted that buy temptation. How can they get the analysis so wrong?
Germany – sold a 30-year bond at 0% interest. Strange times for investors.
Germany – a two speed economy. Manufacturing PMI data shows contraction but the service sector shows expansion.
UK – PM Boris Johnson and his French counterpart meet. Brexit, as usual, dictates the agenda.
UK – Laura Ashley no longer in vogue, as sales fall and the business goes into a full-year loss. A report in Retail Week suggests Laura Ashley to open a new ‘fresh look flagship’ store. See here.
UK – CBI said today (Thursday 22nd August 2019) that UK retail sales fell in August at the fastest pace since December 2008.
EU – business growth picked up slightly in August, helped by better services activity and with manufacturing contracting at a slower pace. Welcome news for the Eurozone.
UK – Ocado experienced a second fire – this time at its facility in Erith. Some customer disruption will be expected.
U.S. – weekly jobless claims (unemployment) fell more than expected – drop to 209,000 verses 216,000 expected.
U.S. – Dow futures up around 80pts as Jackson Hole summit starts.
U.S. – China threatens countermeasures on trade – but no details are given.
Russia – launches life-size humanoid robot into space. See details here.
U.S. – Europe trade war likely?
U.S. – will Trump take on the EU with tariffs before the trade war with China has a satisfactory resolution? Some analysts suggest that a U.S. trade war with Europe would be more damaging than the U.S. trade war with China.
Statistics reportedly show that in 2018 the U.S. imported more goods and services from Europe than from China. And that exports were substantially higher to Europe than to China. Are tariff trade wars the right way to resolve a dispute?
UK – sterling has edged higher today against both the dollar and Euro.
U.S. – Dow and S&P 500 give up earlier gains as yield curve inverts for the third time on Thursday 22nd August 2019.
UK – Sterling surges on Angela Merkel’s ‘deal comments’.
Stock market indices update, August 20th 2019
Closing positions of: FTSE 100, DAX, DOW, S&P 500, NASDAQ, NIKKEI & GOLD
I trade these indices.
Global markets waiting to hear from Fed chief, Jerome Powell.
FTSE 100 – closed at: 7128
DAX – closed at: 11747
DOW – closed at: 26252
S&P 500 – closed at: 2923
NASDAQ – closed at: 7991
NIKKEI – closed at: 20628
GOLD – closed at around: $1,507
Key: Green highlight markets move up. Red highlight markets move down.All values rounded.
Ongoing post