- Wall Street indices launched today's trading lower with declines deepening later on after release of services ISM data for August. S&P 500 trades around 0.9% lower, Nasdaq drops 1.2% and Dow Jones drops 0.7%. Small-cap Russell 2000 drops 0.6%
- US services ISM index unexpectedly jumped from 52.7 to 54.5 (exp. 52.5), with Prices Paid, Employment and New Orders subindices seeing strong gains.
- ISM beats led to increase in hawkish Fed bets, with money markets now seeing an around 50% chance of 25 basis point rate hike at November 2023 meeting
- European stock markets indices finished today's trading lower. German DAX and UK FTSE 100 dropped around 0.2%, French CAC40 moved more than 0.8% lower while Italian FTSE MIB slumped 1.5%
- Bank of Canada kept rates unchanged at today's meeting, in-line with market expectations. Main rate was left at 5.00%, following two 25 basis point rate hikes in June and July
- ECB member Visco said that European Central Bank is near the level where rate hikes can be stopped
- ECB member Kazimir said that preferred option would be to raise rates by 25 basis point next week
- Polish zloty (PLN) slumped after the National Bank of Poland delivered an outsized 75 basis point rate cut, pushing the main interest rate down from 6.75 to 6.00%. Market was expecting a 25 basis point cut to 6.50%
- US trade balance for July came in at -$65.0 billion (exp. -$68.0 billion)
- Eurozone retail sales dropped 0.2% MoM in July (exp. 0.2% MoM)
- LVMH suggested that luxury spending in US during this quarter is much lower
- The Australian economy expanded by 0.4% QoQ in Q2 2023 (exp. 0.3% QoQ)
- Oil surges more than 1% and Brent is traded above $91 per barrel. In the same time NATGAS declines more than 2,3%
- Precious metals are trading lower, Gold loses 0,5% and Silver extends losses to 1,5% at $23,15 per ounce
- Crypto sentiments are still weak with Bitcoin at 25,7000 level and Solana loses more than 4% despite positive comments from Visa
- AUD, JPY and USD are the best performing G10 currencies while GBP and CHF lag the most
USDPLN surges 1.5% today as USD is propped up by services ISM beat and PLN is dragged lower by massive rate cut. Pair briefly traded at the highest level since April 2023 but has given back part of the gains. Source: xStation5
Daily Summary: US2000 leads on Wall Street📈Crypto and metals up, US dollar down
3 markets to watch next week (03.10.2025)
Chart of the day: EURUSD (03.10.2025)
BREAKING: Eurozone PMI slightly lower than expected 📌
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