Following the weak August composite Purchasing Managers Index (PMI) economic data released by the United States yesterday, the July durable goods orders data released by the Commerce Department on Wednesday (24th) was mixed, which once again sounded the alarm for the US economic recession. Major U.S. stock indexes opened lower on Wednesday as people waited for Federal Reserve Chairman Powell to speak at Jackson Hole for clues about possible future rate hikes.
Before the deadline,Dow Jones Industrial Averageup 0.05%,Nasdaq Composite Indexrose 0.11%,S&P 500 Indexup 0.05%,Philadelphia SemiconductorThe index fell 0.84%.
Although the United States released a series of weak economic data yesterday, Minneapolis Fed President Neel Kashkari, who has been a “dovish” for many years, turned hawk.
Kashkari said his biggest concern is the Federal Reserve (Fed) misinterpreting the extent and duration of price pressures, which could lead to more aggressive rate hikes, and it is clear that the Fed needs to continue to tighten monetary policy. , until inflation fell from its highs.
According to the latest data released by the U.S. Department of Commerce today, the initial monthly growth rate of U.S. durable goods orders in July was 0.0%, lower than market expectations of 0.8%, and the previous value in June was revised up from 1.9% to 2.2%; The growth rate was reported at 0.3%, better than the expected 0.3%, and the previous value in June was revised down to 0.3% from 0.4%.
In Europe, traders are betting that the European Central Bank (ECB) will take bolder action to rein in soaring prices.CurrentlyEURThe district is struggling with record-high energy prices. Money markets are now fully pricing in a 1 percentage point tightening of policy ahead of the October meeting, when the deposit rate will fall to 1%.Germany 10-year Treasury yieldIt climbed 4.5 basis points to 1.36%, a two-month high.
In energy, Brent crude futures rallied above $100 a barrel after Saudi Arabia warned of possible output cuts to boost oil prices and data showed a possible recovery in U.S. demand. In addition, investors need to pay close attention to the inventory data released by the American Petroleum Institute (EIA) today.
By press time, Brent October crude futures were up 0.81% at $101.03 a barrel, while West Texas October crude futures were up 0.81% at $94.47 a barrel.
As of 21:00 on Wednesday (24th) Taipei time:
Stocks in focus:
Northstrong Department Store (JWN-US) fell 16.96% to $19.27 a share in early trade
U.S. department store chain Nordstrom lowered its annual profit outlook, citing slowing consumer spending and the threat of a downturn in the economy. Adjusted earnings per share this year are estimated at $2.30-$2.60, down from the original estimate of $3.20-$3.50, Nordstrom said. Nordstrom’s second-quarter revenue rose 12% year-on-year, with a profit of $126 million and earnings per share at $0.81, slightly above market expectations of $0.8.
Bed Bath & Beyond(BBBY-US) rose 30.18% to $11.43 a share in early trade
Struggling retailer Bed Bath & Beyond has tapped 100 million lenders to offer much-needed loan deals with the help of JPMorgan, according to The Wall Street Journal (WSJ). The company hopes to shore up liquidity amid a struggling inventory and slumping sales. Shares of Bed Bath & Beyond rose more than 15% in premarket trading following the news.
farfetch(FTCH-US) rose 13.84% to $8.93 a share in early trade
Farfetch, a luxury e-commerce company, will acquire a majority stake in YNAP, the online business of the Swiss luxury goods company Richemont.
Today’s key economic data:
- The initial monthly rate of U.S. durable goods orders in July was 0.0%, expected to be 0.6%, and the previous value of 2.2%
- The initial monthly rate of core durable goods orders in the United States in July was 0.3%, expected to be 0.2%, and the previous value of 0.3%
- US July seasonally adjusted existing home sales index monthly rate expected -4%, the previous value -8.6%
- U.S. July seasonally adjusted existing home sales index annual rate previous value – 19.8%
Wall Street Analysis:
The latest data showed weaker economic activity from the U.S., Europe and Asia, underscoring the difficulty for the Fed to raise interest rates and cut inflation without triggering a recession. ING economist Rob Carnell said it was good news in some ways, the less the Fed needs to do now that the data is getting weaker, but Carnell thinks Fed Chairman Powell is unlikely to be at this week’s Jackson Hole Change your attitude in conversation.
“The Fed is likely to reiterate this weekend that there is more room for interest rate hikes because they really want to bring inflation down,” said Kelvin Tay, chief investment officer for Asia Pacific at UBS Global Wealth Management.
Russia’s war on Ukraine has sent energy prices soaring, and central banks face a delicate balance between tackling inflation and avoiding recession. “As European gas prices continue to hit record highs, investors are increasingly concerned that central bank rate hikes and rising energy prices will tip the global economy into a prolonged recession,” said CMC Markets analyst Michael Hewson.