- FX: The pound was by far the strongest major currency on the day after German Chancellor Angela Merkel said that a solution on the Irish backstop is possible within 30 days (though it’s since been suggested that she was just being “polite”). The kiwi was the weakest major currency today.
- US data: Initial jobless claims came in at 209k, below estimates of 216k. Markit Manufacturing PMI missed estimates and dipped into contractionary territory at 49.9.
- In comments to media, two Fed Presidents (Kaplan and Harker) struck opposite notes on the economy and monetary policy (dovish and hawkish respectively). As we noted yesterday, Fed Chairman Powell’s speech at Jackson Hole tomorrow will be key given the diverging opinions among Fed policymakers.
- Commodities: Both gold and oil edged about 0.5% lower on the day.
- US indices recovered from a late morning swoon to finish mixed on the day.
- Financials (XLF) were the strongest sector on the day while Materials (XLB) were the weakest.
- Stocks on the Move:
- Boeing (BA) surged more than 4% on news that company’s 737 MAX plane may be just 4-6 weeks from getting reapproved by the Federal Aviation Administration.
- Retailers remained strong again today after strong earnings from BJ’s Wholesale Club (BJ, +17%) and Nordstrom (JWM, +16%).
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.