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According to the Wall Street Journal, Accenture also participated in AlphaSenses funding round.According to the Wall Street Journal, JPMorgan Asset Management participated in a funding round for Alphasense, a U.S. financial information and market intelligence platform.June 3 – According to a Reuters poll of economists, the European Central Bank (ECB) will raise its deposit rate to 2.25% on June 11, with a possible further increase in September, as the central bank weighs energy-driven inflation against a weak economy. Inflation in May was 3.2%, well above the ECBs target of 3.0%. More worryingly, core inflation rose faster than expected, reaching 2.5%, indicating the impact of the war in Iran is pushing up prices. Recent indicators, including PMI surveys and official data, suggest an economic slowdown. With the war lasting over three months and no clear solution in sight, the situation could worsen further, and the Strait of Hormuz remains severely congested. Most policymakers have made it clear that a June rate hike is inevitable, and even a peace agreement is unlikely to prevent it. However, economists believe that factors such as a weak economy, a softening labor market, and already high interest rates compared to the surge in inflation expected in 2022 suggest that aggressive tightening is not advisable.June 3 - The European Central Bank (ECB) is expected to raise its key interest rate next week, the first time since 2011. This move aims to send a clear signal about inflation to the market as the eurozone economy faces the risk of recession. However, the situation in 2011 differed significantly from policymakers expectations, leading economists to worry that a repeat could occur. In 2011, the ECB raised its key interest rate twice in response to rising oil prices. However, policymakers misjudged the state of the eurozone economy, which was mired in a debt crisis. The rate hikes were quickly reversed, and the ECB lost credibility for failing to properly understand the severity of the economic challenges facing the eurozone. "It took them 10 years to regain their credibility, and now theyre going to repeat the same mistakes," said Sami Char, chief economist at Lomar de Odier. Holger Schmidlin, chief economist at Berenberg Bank, stated, "The ECBs planned rate hike in June might mitigate the impact to some extent, causing less damage, but further rate hikes could delay the economic recovery following the Iran crisis and could even plunge the Eurozone into an unnecessary short-term recession."Intel (INTC.O) shares extended gains to 7.8% in pre-market trading after five consecutive days of declines.

AUD/USD falls to 0.68 on dismal Aussie/China statistics and risk aversion

Alina Haynes

Sep 01, 2022 15:16

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As bears cheer on weak Australian statistics and a risk-off mindset on Thursday, the AUD/USD drops to a new 1.5-month low near 0.6800. Yet, adverse concerns about China, its major customer, may also be to blame for the current weakness of the Aussie pair.

 

Caixin Manufacturing PMI in China fell to 49.5 from 50.2 predicted and 50.4 earlier, signaling the steepest decline in activity in three months.

 

In other news, Home Loans in Australia dropped by -7.0% in July, worse than the -3.0% drop forecast and the 3.3% drop seen in June. For the same time period, Investment Lending for Homes fell by -11.2%, compared to a drop of 6.3% in the previous month. It should be noted that contrary to projections of a 1.5% expansion, private capital expenditure in Australia shrank by 0.3% in the second quarter (Q2).

 

The risk premium on 10-year US Treasuries has risen to a two-month high of about 3.21 percent, and the risk premium on 2-year bond coupons has risen to its highest level since at least 2007. The S&P 500 Futures were trading at 3,930, down 0.36 percent intraday, their lowest level since late July as of publishing.

 

Recent market sentiment has been pushed down by worries about another ship blocking the Suez Canal, skepticism about China's covid circumstances, poor data, and conflicts with the United States over Taiwan. The president of Taiwan, Tsai Ing-Wen, has recently expressed an interest in bolstering ties with the United States in the semiconductor industry.

 

In light of the Fed's recent aggressive posture, despite conflicting data, AUD/USD bears are likely to hold control as China-related news is also unfavorable. Before Friday's release of the US Nonfarm Payrolls report, traders may find some diversion in today's release of the US ISM Manufacturing PMI for August, which is expected to be 52.8 from 52.0 before (NFP).

 

If the AUD/USD drops below May's low at 0.6830, the next major support is seen in early July near 0.6760. Alternately, a support-turned-resistance line from early August, near 0.6850, will join the 0.6830 barrier to probe the pair's corrective slide.

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