CURRENCY MARKET WRAP
As of Wed Sep 4th, Singapore Time zone UTC+8
U.S. Dollar Index, -0.02%, 98.94
USDJPY, -0.34%, $105.86
EURUSD, +0.05%, $1.0973
GBPUSD, +0.19%, $1.2091
USDCAD, +0.10%, $1.3340
AUDUSD, +0.71%, $0.6763
NZDUSD, +0.48%, $0.6338
U.S. market digested several global events after the long holiday weekend. Additional tariffs imposed by the U.S. and China on each other went into effect on Sunday, much to the dismay of those hoping for a reprieve. Separately, protests escalated in Hong Kong, and UK Prime Minister Boris Johnson threatened to call a snap election if rebel lawmakers vote to block a no-deal Brexit. Johnson lost his party’s parliamentary majority yesterday.
The release of the U.S. ISM Manufacturing Index for August did not help market sentiment, which declined to 49.1% (consensus 51.3%) from a 51.2% reading in July. This denoted the first contraction (a reading below 50.0%) since 2016. The broader market quickly fell to session lows and traded below its opening levels for the rest of the session.
U.S. Treasury yields fell to session lows soon after the release of the ISM Manufacturing Index but steadily came off those lows as the session progressed. The 2-yr yield finished three basis points lower at 1.47%, and the 10-yr yield finished four basis points lower at 1.47%. The U.S. Dollar Index decreased -0.02% to 98.94. WTI crude lost 2.1%, or $1.15, to $53.91/bbl.
STOCK MARKET WRAP
S&P500, -0.69%, 2,906.27
Nasdaq, -1.11%, 7,874.16
Nikkei Futures, -0.11%, 20,573.0
The stock market finished lower on Tuesday to begin the shortened trading week and the month of September. The S&P 500 declined 0.69%, while the Dow Jones Industrial Average (-1.1%), Nasdaq Composite (-1.1%), and Russell 2000 (-1.5%) fell more than 1.0%.
In corporate news, Boeing (BA 354.42, -9.67, -2.7%)fell on a report from The Wall Street Journal indicating its 737 MAX could be grounded through the holiday season. Uber (UBER 30.70, -1.87, -5.7%)and Lyft (LYFT 45.42, -3.55, -7.3%) hit new all-time lows as California moved closer to classify drivers as employees instead of contractors.
Amazon (AMZN 1789.84, +13.55, +0.8%) outperformed after RBC Capital Mkts raised its AMZN price target to $2600 from $2250.