Support
Crucial economic data set to stir market movements
US economic reports are set to impact markets, with jobless claims, durable goods orders, and Q2 GDP data in focus
Gains seen across Chinese, Australian, and Japanese markets amid positive regional sentiment
Slight rise in USD/JPY as the yen weakens
WTI oil holds near $69.60 as US crude stockpiles drop significantly
Today's global market events offer a broad spectrum of economic insights. Several key developments will shape the trading landscape, with particular focus on statements from central bank officials and vital data releases. The Federal Reserve's representatives, including Chair Jerome Powell, will share their perspectives, while the durable goods report and jobless claims will provide a clearer view of economic momentum.
United States Economic Reports:
- Initial Jobless Claims: Forecast stands at 224K, compared to the prior 219K.
- Overall Durable Goods Orders: Expected to drop by 2.8% (previous growth was 9.9%).
The GDP report for Q2 is pivotal:
- Growth Rate (QoQ): Forecast of 3.0%, compared to the last figure of 1.4%.
- Price Index: Anticipated to be 2.5%, down from 3.1%.
- Core PCE: Expected at 2.8%, down from 3.7%.
- Consumer Spending: Predicted to rise by 2.9%, significantly up from the prior 1.5%.
International market
- The Asia-Pacific markets showed resilience, with notable gains in Chinese, Singaporean, Australian, and Japanese markets, reflecting a bullish sentiment amid regional economic developments.
- In Japan, the Bank of Japan’s (BOJ) meeting minutes indicated a divided board regarding the pace of future interest rate hikes. Although interest rates were raised to 0.25% in July, the board refrained from further hikes at the September meeting.
USD/JPY edged up, trading above 144.50 as the yen weakens slightly.
Commodities
Gold prices are hovering below recent peaks, with traders showing hesitancy ahead of crucial Federal Reserve announcements. Rising geopolitical risks and concerns around China's recovery are providing some support for the precious metal, though the US Dollar's strength has capped gains.
Silver remains range-bound, trading between $31.80 and $31.85, unable to break higher despite its recent gains over the past weeks. However, the technical outlook suggests potential for continued upward movement.
West Texas Intermediate (WTI) oil is trading around $69.60 per barrel, with demand forecasts improving on the back of dwindling US crude inventories. The US Energy Information Administration (EIA) reported a significant inventory drawdown of 4.471 million barrels, far exceeding expectations of a 1.2 million-barrel reduction. Nonetheless, concerns persist about whether China's economic stimulus will deliver sufficient support for global oil demand growth.
These key indicators, coupled with the speeches from central bankers, will likely drive market volatility and trading opportunities throughout the day.
