A very quiet day on the cards due to Labour day bank holiday both in the US and Canada. Major market moves on Friday were attributed to the initial cheer of US unemployment rate falling to 8.4%. Headline NFP met expectations with around 1.371 Million. Then stock losses took hold led by the tumble in the Big tech: Amazon, Apple, Microsoft and Facebook, that pushed the tech-heavy Nasdaq 100 more than 5% at one point. Treasury yields rose while the dollar has stayed mainly flat.
European stock markets pushed higher on Monday despite of the weak Industrial output numbers seen in Germany earlier. Merger talk for two Spanish Banks and market expectation on ECB maintaining easy monetary policy at a meeting later this week drove up Europe’s financial sector on Friday with banks stocks leading gains.
Ministers plan laws overriding part of UK withdrawal deal. UK chief negotiator David Frost said the UK was not “scared” of walking away. Cable remains heavily offered amid intensifying no-deal Brexit fears. The Bank of England will probably need to ease monetary policy further to help combat the economic impact of the coronavirus, according to central bank official Michael Saunders who spoke on Friday. The officials are still reviewing whether taking interest rates below zero would be an effective form of stimulus.
Mixed data earlier from the second-largest economy of the world, China. China’s export rose for the third consecutive month in August, climbing to 9.5%, the strongest gain since March 2019. On the flip side, imports are down 2.1%.
Oil prices dropped Monday to the lowest levels since July, after Saudi Arabia cut its October official selling price. The market remains oversupplied with demand curtailed by Pandemic with Brent down 1.6% at $42.00. Gold futures rose 0.1% to $1935.
Russia reports higher inflation number in August. Yields rose across the Russia government eurobonds yield curve. The poisoning of Russian opposition leader Alexey Navalny with a military-grade nerve agent has triggered the strongest threat of new sanctions against Russia in months, battering the nation’s bonds and currency. While half the economists surveyed by Bloomberg forecast a quarter-point cut on Sept. 18, the weak ruble is adding to the reasons for Governor Elvira Nabiullina to keep interest rates on hold.
FITCH DOWNGRADES ANGOLA TO ‘CCC’n. GFM: Ghana Govt To Issue GH¢22.7 bln (US$4 bln) In Treasury Bills Over the Next 3 Months, September to November, the Finance Ministry said in an issuance calendar.