CURRENCY MARKET WRAP
As of Tue Oct 3rd, Singapore Time zone UTC+8
U.S. Dollar Index, -0.13%, 99.02
USDJPY, -0.54%, $107.17
EURUSD, +0.26%, $1.0961
GBPUSD, +0.01%, $1.2304
USDCAD, +0.81%, $1.3327
AUDUSD, +0.07%, $0.6709
NZDUSD, +0.32%, $0.6266
U.S. Private-sector payrolls were estimated to have increased by 135,000 in September (consensus 140,000) while the prior month’s print was revised down to 157,000 from 195,000. Private-sector job growth averaged 145,000 in the third quarter, according to ADP, versus 214,000 in the third quarter of 2018.
The market will focus on today’s ISM Non-Manufacturing report which not only provides the best forecast for monthly Non-Farm payrolls figures due Friday, but also will show the state of the service sector which makes up more than 70% of the US economy.
WTI crude lost 1.8%, or $0.90, to $52.64/bbl to extend its recent decline amid bearish inventory data and growth concerns. These growth concerns also contributed to another advance in Treasuries, driving yields lower across the curve. The 2-yr yield declined eight basis points to 1.48%, and the 10-yr yield declined five basis points to 1.60%. The U.S. Dollar Index declined 0.13% to 99.02.
New York Fed President John Williams (FOMC voter) said he thinks monetary policy is “in the right place” at this time. Market participants, meanwhile, increased their expectations for a 25-basis points rate cut at the October FOMC meeting, according to the CME FedWatch Tool. This probability increased to 75.4% from 53.4% one week ago.
STOCK MARKET WRAP
S&P500, -1.79%, 2,887.61
Nasdaq, -1.56%, 7,785.25
Nikkei Futures, -2.67%, 21,382.5
S&P 500 fell 1.79% on Wednesday, as growth concerns continued to force investors to reassess earnings prospects and premium valuations. The Dow Jones Industrial Average lost 1.9%, the Nasdaq Composite lost 1.56%, and the Russell 2000 lost 0.9%.
Although the market closed off its lows, it was still a disappointing day for the stock market. Notable laggards included Delta Air Lines (DAL 54.35, -2.66, -4.7%) after it raised its FY19 unit cost outlook to +2% from +1% and Exxon Mobil (XOM 67.15, -1.80, -2.6%) after an SEC filing revealed its results could come in lighter than expected due to lower oil prices.