- US August non-farm payrolls +315K vs +300K expected
- Transport of gas to Nord Stream pipeline has been completely stopped due to a leakage.
- G7 ministers agree to Russian oil price cap proposal
- There will be price caps on Russian oil and refined products – report
- OPEC+ likely to roll over quotas at next week’s meeting but could mull cut – report
- Baker Hughes US oil rig count 596 vs 605 prior
- US July factory orders -1.0% vs +0.2% expected
- Canada labor productivity rate for the Q2 rose 0.2%
- Poll: Economists almost evenly-divided on 75 bps hike from the ECB next week
- JPMorgan cuts China growth estimates
Markets:
- NZD leads, GBP lags
- S&P 500 down 42 factors to 3924. Down 3.3% for the week
- Gold up $14 to $1709
- US 10-year yields down 7 bps to three.19%
- WTI crude down 43 cents to $87.04
The day was lower in half for US merchants with two utterly completely different themes. Early on, the roles report hit a goldilocks word. The headline was a contact larger than anticipated however unemployment rose and earnings had been barely under the consensus. That was sufficient to spark a drop within the US greenback, giving again a lot of yesterday’s beneficial properties on most fronts. It additionally kicked off a danger rebound in shares as front-end yields plunged.
At noon, it was turned on its head as Russia shut down the Nord Stream 1 pipeline utterly, asserting that it will not resume at 20% flows as anticipated. There was the pretext of an oil leak within the turbine however nobody is believing that and even with storage ranges excessive, Europe will now be in a dire place to get via winter with out harsh rationing and the financial penalties that go together with it.
The euro instantly fell to 0.9950 from 1.0025 and cable plunged again to 1.1500 from 1.1580. Each held yesterday’s lows however not with a lot of a cushion.
The commodity currencies had been having sturdy days however gave again a giant chunk of beneficial properties. They nonetheless managed to complete larger with NZD main the best way with a 33 pip achieve to 0.6113.
USD/JPY was uneven after non-farm payrolls because it fell initially again under 140.00 after which hit a brand new 24-year excessive at 140.79 not lengthy afterwards earlier than slipping again to 140.22. There was some jawboning in Japanese hours and that shall be an element to look at.
Monday is a vacation within the US and Canada however I am unsure that may imply a quiet market. We’ll additionally get the UK PM vote on Monday.
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