Analysts at ANZ explained that Global equities started September on the back foot while the USD strengthened and Treasury yields lifted.
Key Quotes:
“European bourses shed 0.6-1.3% with the CAC 40 leading declines. US stocks were down 0.1-0.3% at the time of writing. The USD was stronger against all in the G10 on the back of strong data and ongoing trade tensions. That only added to emerging market contagion fears as Argentina seeks emergency loans from the IMF. Treasury yields rose 2.6-4.6bps across the curve with global yields little changed. Oil prices rose with gold trading back down below $1200/oz.”
“ISM manufacturing surged to 61.3 (mkt: 57.6; last: 58.1), another cycle high. New orders advanced to 65.1 from 60.2, while the production index increased to 63.3 from 58.5. New export orders were the one weak spot, edging down to a 10 month low of 55.2, from 55.3. The manufacturing sector continues to contribute positively to growth momentum. Separately, construction spending rose 0.1% in July from -0.8% the previous month.”
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