English
3
Aug

U.S. ISM Index, Eurozone PMI, eBay, CVS Health, Moderna Earnings

calendar 03/08/2022 - 07:54 UTC

The USD/TRY pair remained within the range seen over the course of the past days, remaining mostly below the 18.0-mark. On Wednesday morning Turkish inflation data will be published for July, expectations are that the consumer price index (CPI) will continue rising after reaching a level of 78.6% in the previous month.

Stock market indices like the US 500, Germany 40 and France 40 traded moderately lower for the second trading day in a row, while the negative momentum continued to be seen among Asian markets like the Japan 225 (Yen) and in particular Chinese indices like the China A50 with the latter reaching by Wednesday morning a new low since early June. Increased volatility could be observed around the time plane of Nancy Pelosi, the speaker of the US House of Representatives landed in Taiwan. China warned repeatedly that there would be consequences if Pelosi would indeed visit the territory, that is also claimed by the PRC but for now besides increased military maneuverers around the island no significant escalation was reported.

From the U.S. factory orders and ISM Non-Manufacturing Index data can be expected. Later during the Asian-Pacific trading session Australian trade balance statistics

EUR/USD

Driven by the strength of the dollar, the EUR/USD pair was by the end of the day on Tuesday down by more than one per cent. At the same time the euro performance against other majors was mixed with a small downside against the Swiss franc (CHF) and pound sterling (GBP), while the EUR/JPY pair managed to recover and traded by Wednesday morning higher after reaching a new low since May at the beginning of this week.

On Wednesday morning German trade balance data and eurozone composite PMI statistics will be released. Also for Wednesday Italian and eurozone retail sales releases are scheduled. Then by the end of the week on Friday German, Italian and French industrial production statistics will be published.

EUR/USD

Gold

After gold prices reached a new one month high around the start of the U.S. trading session, the gold price settled at the end of the day lower for the first time in five trading days just as the dollar appreciated and yields like that of the 10-year U.S. T-Note went up. Still, against some other currencies like the euro, gold prices are still rising with the Gold (EUR) CFD trading at the end of the day slightly higher and extending the upside by Wednesday morning.

Prices dropped noticeably also among other precious metals like silver, platinum and especially palladium with the price of the latter falling by more than six per cent.

Gold

WTI Oil

Oil prices settled at the end of the day almost unchanged despite still reasonably high intraday volatility with the min-max price range of WTI crude oil amounting to more than four per cent.

Prices came down in the evening hours among other factors also likely due to the American Petroleum Institute (API) reporting in its weekly statistical bulletin that crude oil inventories were up by almost 2.2 million barrels, while a relatively small draw from gasoline and distillate stockpiles amounting to 0.2 million barrels and 0.4 million barrels respectively was reported.

On Wednesday the Energy Information Administration (EIA) is also publishing its weekly data on the stockpile of these energy commodities. Also on Wednesday OPEC+ countries will hold their monthly ministerial meeting. Reuters reported that there is increasing confidence among energy traders that the group will not announce further new output hikes at this meeting.

WTI Oil

US 500

Major stock market indices like the US 500 and US 30 closed moderately lower on Tuesday, while the US Tech 100 index remained with only marginal downside by the end of the day. The VIX – Volatility Index rose for the second day in a row.

Uber (+19.11%) was one of the best-performing in the market on Tuesday with the company reporting a much better revenue than expected at $8.07 billion and a steady increase in its Mobility division with bookings value up by 57% compared to a year ago, while its Delivery division continued to grow. At the same time the company reported a staggering loss of $2.6 billion, of which $1.7 billion was attributed to a revaluation of its investments in other companies including Zomato and Grab.

AMD shares fell in the extended trading session by almost seven per cent despite the company slightly exceeding set expectations on both revenue and earnings with the latter reaching on adjusted basis $1.05 per share. Investors might have been disappointed by the relatively weak guidance for the ongoing quarter as the company expects to reach a revenue of $6.7 billion (past quarter $6.55 billion).

Robinhood Markets surprisingly released their quarterly results one day early just as the company also announced that it would significantly downsize in terms of headcount with 23% of its employees being let go. Its quarterly results were in terms of revenue slightly worse than anticipated with the company bringing in $318 million while losses persisted at $0.34 per share. More bad news for the broker which became famous in recent years with a business model not charging its retail customers trading fees was that the New York Department of Financial Services levied a fine of $30 million against the company for “significant failures” in its crypto division in regard to cybersecurity and anti-money laundering (AML) regulation.

On Wednesday earnings from Moderna, CVS Health, Dynatrace, Booking Holdings, eBay and Sunrun are expected.

US 500

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