EUR/USD 1.18073
0.145%
Gold 4795.34
2.933%
Oil 61.713
-0.578%
USD/JPY 155.470
-0.082%
GBP/USD 1.36813
0.097%
GBP/JPY 212.706
0.023%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On February 3rd, DBS Bank senior economist Radhika Rao stated in a report that the Indian market is poised for a rebound following the announcement of the US-India trade agreement. She noted that high tariffs were a major factor dragging down market sentiment over the past quarter, while the agreement is "undoubtedly a significant boon to the real economy and exports," and will also boost financial market sentiment. Rao added that textiles, gems and jewelry, engineered products, leather, and chemical products are expected to be the main beneficiaries. She wrote that considering the punitive tariffs previously imposed for purchasing Russian oil, the reduction from 50% to 18% effectively brings Indias tariff levels close to those of most Southeast Asian countries.According to sources, Republican leaders in the U.S. House of Representatives are planning to vote next week on a key bipartisan housing bill.February 3rd - After more than five months of tariff suppression by Trump, India has finally seen a turning point. However, problems remain. For three decades, India has considered the United States its preferred export destination—not only for labor-intensive industries such as textiles, shrimp, and jewelry, but also for white-collar software services. The Trump administrations double whammy of trade restrictions and work visas for Indian tech workers is shaking this broad relationship. This is not unfounded: New Delhis budget for the next fiscal year, released on Sunday, has markets deeply concerned about the financial costs of resisting pressure from Washington. Take agriculture, for example. Will Modi ease the ban on GMO food imports when the domestic cultivation of GMO crops is prohibited? India adds 10 billion liters (2.6 billion gallons) of ethanol to its gasoline annually, enough to consume most of the corn harvested in the US Midwest. But getting Indian drivers to accept American corn in their fuel tanks is no easy task. It will be difficult to promote the benefits of free trade to local farmers if they dont benefit from it. The opposition is expected to closely scrutinize Modis concessions on agriculture.The Reserve Bank of Australia will release its interest rate decision and monetary policy statement in ten minutes.The U.S. House Rules Committee has advanced the government funding bill, clearing the way for a full vote as early as tomorrow.

DAX, CAC, and FTSE 100: Futures Point to a Bullish Session

Florala Chen

Mar 06, 2023 17:24

微信截图_20230306172236.png

The Majors

It was a bullish Friday session, with the CAC and DAX seeing gains of 0.88% and 1.64%, respectively. However, the FTSE 100 trailed the front-runners, rising by just 0.04%, with a stronger GBP/USD pegging the 100 back from a more meaningful move.


Early in the day, private sector PMI numbers from China and the euro area were positive. Following impressive Caixin Manufacturing PMI numbers from China, the Caixin Services PMI was also positive, with the PMI rising from 52.9 to 55.0.


Later in the session, the Fed talk of ‘slow and steady’ resonated, with a solid ISM Non-Manufacturing PMI survey also bullish.


The NASDAQ Composite Index and the S&P 500 responded to the stats and shift in Fed sentiment, rising by 1.97% and 1.61%, respectively. The Dow gained 1.17%.

The Stats

German trade data drew interest ahead of service and composite PMIs. The German trade surplus widened from €9.7 billion to €10.8 billion in January, suggesting a less gloomy macroeconomic environment.


For the Euro area, the Services PMI increased from 50.8 to 52.7, down from a prelim 53.0. The Composite PMI rose from 50.3 to 52.0, down from a prelim 52.3.

According to the Finalized Composite Survey,


The Eurozone economy expanded at its most marked pace since June 2022.


Incoming new business increased for the first time since May 2022, though new export sales fell for a twelfth consecutive month.


Business confidence rose to a 12-month high but sat below pre-Ukraine war levels.


Firms continued to hire across the private sector, with the pace of hiring above the series average.

Across the manufacturing sector, input price inflation slowed, while service sector companies reported a sharp increase in operating costs because of wage pressures.


By member state, Spain ranked first, with the Composite PMI hitting a nine-month high of 55.7. German sat at the bottom of the table, with an eight-month high of 50.7.

From the US

The US economic calendar drew plenty of interest, with the all-important ISM Non-Manufacturing PMI survey in focus.


In February, the ISM Non-Manufacturing PMI slipped from 55.2 to 55.1, signaling a positive service sector outlook. Significantly, the ISM Non-Manufacturing Employment Index jumped from 50.0 to 54.0, suggesting that firms have yet to reach the top side of hiring.


While the stats supported a hawkish Fed, a shift in sentiment toward the Fed policy outlook delivered support for riskier assets. FOMC Member Bostic broke from the recent hawkish rhetoric, favoring a ‘slow and steady’ hand and a 25-basis point rate hike. The comments resonated on Friday.

Suggestion