News / Analysis
Finance Update – US Election Pre-Shocks Start RumblingSeptember 1, 2020
Asian indices are up this morning led by the China A50’s 1.8% rise. Australia and New Zealand both closed down 1.3 & 1.4% respectively after the Reserve Bank of Australia maintained its 0.25% interest rate. Building permits in Australia increased by 12% MoM in July while AiG’s manufacturing index dropped to 49.3.
Manufacturing in New Zealand was also down by 3 ticks to 53.6 while building permits there decreased by 4.5%. Unemployment in Japan was up a tenth in July to 2.9%, while China’s manufacturing PMI for August increased to 53.1.
Spain led European indices south yesterday with a 2.3% drop. The FTSE and Dax lost about 2/3 of a per cent each. Preliminary PMIs from Italy and Germany came in negative in August, with Q2 GDP falling 17.7% QoQ in Italy.
US equities followed Europe lower yesterday, the DOW losing 0.78% but the Nasdaq managed to add 0.68% thanks to split stock jumps from Apple and Tesla. The Dallas Fed yesterday published August’s Manufacturing Business Index – a swift rise to 8 from -3 the month before. Meanwhile, in Canada, raw materials prices disappointed with a 3% increase in July while building permits declined by 3%, following a 5.7% rise in June.
Both oil and gold are up this morning as the US dollar continues to weaken for a 4th month in a row, putting the currency at a 2-year low.
Zoom (+8.63%)yesterday beat expectations with a 355% increase in revenues to $663.5 mn, driving EPS up from 2 cents last year to 63 cents in this latest quarter and shares another 9.3% after trading.
Apple (+3.39%) shot up more than 4% yesterday after its 4-for-1 stock split, losing some gains towards session’s end, while TESLA added 12.57% and another 3% after hours, its 5-for-1 split stock now worth $498.32.
Qantas (+1.29%) has announced a $370 mn bond issuance with a 5.25% coupon – double the previous issuance – to fund previous maturing bonds and boost liquidity.
Facebook (-0.16%) is planning to block Australian users from news sharing, after the government proposed a law forcing companies to pay media firms for their content, according to Bloomberg. And Ford is down 1.73% after announcing further job cuts – numbers as yet undisclosed.
Lots of dividends on the agenda today, from VISA, Invesco, Fresenius, Wells Fargo, Intel, Phillips 66, Deutsche Post, Skyworks, FirstEnergy, Pacca, Wolters and LANXESS.
|7:15 – 8:30 AM GMT||Spain, Italy, France, Germany EU||Manufacturing PMIs. German unemployment at 7:55 & Italy’s at 8. EU CPIs & Unemployment at 9|
|08:30 AM GMT||UK||Manufacturing PMI, Consumer Credit & Mortgage Approvals. BRC Shop Prices at 11:01.|
|01:45 PM GMT||US||Markit Manufacturing PMI. ISM’s and Construction Spending at 2, and Vehicle sales at 7.|
|08:30 PM GMT||OIL||API Weekly Crude Oil Inventories|
|01:30 AM GMT (+1)||Australia||GDP|