Market Update & Important Indicators:
US bond yields soared (highest level since 2011) amid evidence the American economy keeps on growing, boosting the USD and pushing gold prices lower; The ISM measure of activity in the US services sector moved to its high level on record along with above expectation employment figures before results are officially released tomorrow; A number of Federal Reserve officials also have delivered upbeat comments about the US economy this week, reinforcing the view that inflation remains steady but not so strong that the Central Bank needs to hasten its pace of interest rate increases; Oil prices notched fresh multiyear highs as the market girded itself for the reimposition of US economic sanctions on Iran’s oil industry with crude rising 1.6% to $76.41/bbl (highest close since November 2014); Brent also hit a new high, closing up 1.8% to $86.29; China plans to sell $3.0bn in the US dollar bond market, only its third such deal since 2004, wooing foreign investors at a time of heightened trade tensions with the US and turbulence in its stock market; Italy sets lower than expected budget deficit targets for 2020 and 20201 after initial plans unnerved global financial markets; Turmoil looms for aluminium prices again, after the world’s largest refinery (Norsk Hydro ASA’s Alunorte alumina refinery) will temporarily close because the area in use for waste processing is close to reaching capacity; Dr copper has called in sick after tumbling 15% from a four year high in June amid mounting concerns the US-China trade war may crimp demand for industrial metals;
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