Positive Data Not Welcome Investors, Here's Equity Movement At The End Of The Week

thecekodok

Despite positive private sector ADP employment data and a good ISM survey manufacturing sector report, equity investors were seen as unhappy with the record.


This is because the positive record indicates that the United States (US) economy is growing well and gives space to the Federal Reserve (Fed) to implement more aggressive interest rate increases.


The streak saw the dollar index continue to strengthen to a 24-year high, but US equities still made small gains at the close of the trading session.




The Dow Jones Industrial Average rose 0.5% to 31,656.42 and the S&P 500 added 0.3% to 3,966.85 while the Nasdaq Composite slipped 0.3% to 11,785.13.


Opening the European zone, the STOXX 600 index fell 1.8% with the government bond market seeing a sell-off while MSCI's gauge of global shares fell 0.8%.



Turning to the Asian region, Japan's Nikkei 225 and Topix were flat while South Korea's Kospi reached 0.5% and Kosdaq rose 0.92%.


Overall, MSCI's broadest index of Asia Pacific shares outside Japan opened lower.


In the meantime, the main focus of investors is now directed to the US NFP employment data report that will be published in the New York session tonight with the market expecting the Oogos post to be lower than July.


Economist comment at National Australia Bank, Tapas Strickland, tonight's data will be decisive for the prediction of a 75 basis point hike by the Fed in September.


A currency market summary showed the greenback strengthening to a fresh 24-year high against ¥140.21 while the Euro was down 1% at $0.99435 and Sterling was down 0.7% at $1.15385.


For commodities, Brent crude was down 3.9% at $91.95 and US crude was down 3.7% at $86.27 as reports of new sanctions in Chengdu, China added to concerns of weak demand and gas cut issues from Russia.


Gold was also down 0.9% at $1,695.0219 an ounce.

Tags