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August 3 - The China Earthquake Networks Center officially measured a 3.3-magnitude earthquake at 03:29 on August 3 in Gao County, Yibin City, Sichuan Province (28.55 degrees north latitude, 104.67 degrees east longitude), with a focal depth of 5 kilometers.August 3rd - According to the Financial Times, British pharmaceutical giant AstraZeneca has been exploring a merger with its US rival Bristol-Myers Squibb, which would create one of the worlds largest pharmaceutical groups with a market capitalization of nearly $400 billion. Sources familiar with the matter revealed that the two companies have been in talks regarding the merger for several months, and negotiations may reach an agreement soon, but there is also a possibility of delays or a breakdown. AstraZeneca is the UKs second-largest listed company by market capitalization, at approximately £196 billion, while Bristol-Myers Squibb has a market capitalization of approximately $133 billion. If the deal is completed, it will be one of the largest corporate mergers and acquisitions in history. This transaction would further accelerate the British pharmaceutical giants strategic shift towards the US market.August 3rd - Sources familiar with the matter revealed that Italian company Prysmian is in advanced talks to acquire US electrical manufacturer Atkore. Prysmian is finalizing preparations for an all-cash acquisition, which could be announced in the coming days. Sources indicated that despite the advanced stage of negotiations, the deal could still be delayed or ultimately fall through. Atkores stock has risen approximately 15% this year in New York, with a market capitalization of around $2.5 billion. Prysmians stock has risen more than a third this year, with a market capitalization of approximately €36.3 billion (about $41.8 billion).The Saudi Arabian and Iranian foreign ministers spoke by phone to discuss diplomatic efforts to de-escalate tensions.The China Earthquake Networks Center automatically determined that an earthquake of approximately magnitude 4.9 occurred near Gao County, Yibin City, Sichuan Province (28.55°N, 104.67°E) at 02:21 on August 3. The final result is subject to the official rapid report.

EUR/USD Expects Fourth Weekly Gains Above 1.0900 Despite The US Dollar's Rebound Advance Ahead Of US NFP

Daniel Rogers

Apr 07, 2023 11:42

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Despite a recent retreat, the EUR/USD bulls maintain control around 1.0920. This reflects the typical Good Friday inactivity and apprehension ahead of the US Nonfarm Payrolls (NFP) report released early in the day. The major currency pair was volatile on Thursday as a result of the US Dollar's initial rebound on fears of a recession, but ended the day unchanged as disappointing US data contrasted with stronger Eurozone data.

 

Fears of a recession in the world's largest economy were prompted by consecutive lackluster US data and falling US Treasury bond yields, giving USD bears a reprieve on Thursday morning. As traders prepared for the all-important NFP, the dollar's subsequent gains were reversed by another disappointing US employment report.

 

Despite this, US Initial Jobless Claims for the week ending March 31 rose to 228K from 200K anticipated and an upwardly revised 246K the prior week. Notable is the increase in Challenger Job Cuts from 77,77K to 89,703K in the given month.

 

Notably, Reuters fanned fears of a recession by citing the most recent decline in the preferred bond market indicator of Federal Reserve (Fed) Chairman Jerome Powell. The most reliable bond market indicator of an imminent economic contraction, according to Federal Reserve research, is the "near-term forward spread" between the forward rate on Treasury bills 18 months from now and the current yield on three-month Treasury bills.

 

According to Reuters, International Monetary Fund (IMF) Managing Director Kristalina Georgieva stated in prepared remarks on Thursday that the global economy is projected to expand by less than 3% in 2023, a decrease from 3.4% in 2022.

 

In other news, Germany's Industrial Production (IP) increased 0.6% year-over-year in February, versus market predictions of -2.7% and previous readings of -1.7%. Additionally, the monthly figures exceeded expectations by 0.1%, coming in at 2.0% compared to 3.7% previously. On Wednesday, Germany Factory Orders for February improved to -5.7% YoY from -12.0% previously revised down and -10.5% market expectations, while MoM growth came in at 4.8% compared to 0.3% expected and 0.5% previous readings.

 

Wall Street and US Treasury bond yields have both reduced weekly losses as a result of these strategies, but investors remain skeptical.

 

In the context of less liquidity surrounding the March US employment report, sporadic activity on the major markets can keep the EUR/USD inactive and prone to abrupt price swings. Notable is the fact that recent dovish Fed forecasts and disappointing US data generate expectations for a positive surprise and enormous price volatility thereafter.


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