What drives the market on July 8?
The market takes breath after the long rally. What opportunities do traders have today?
American business activity declines to 17-month minimum
In September, American private sector activity speeded down to a 17-month minimum, as follows from Friday’s survey data.
IHS Markit’s composite output index, gauging the combined output of both the service and manufacturing sectors, inched down to about 53.4 in September from August’s reading of 54.7.
Eventually, the services purchasing managers’ index demonstrated a reading of 52.9 in September, diving from August’s reading of 54.8.
By the way, market experts had actually hoped that the index would head south to just 55.0.
As a matter of fact, in September, the manufacturing PMI surged to 55.6 in contrast with 54.7 in August.
The vast majority of market experts had generally hoped for an outcome of 55.0.
Well, with storms affecting the east coast of the United States, there’s nothing surprising in disappointing poll data in September. The flash PMI showed that the tempo of economic surge went down to its lowest value for nearly 1.5 years, as some financial analysts pointed out.
Notwithstanding the deceleration, a number of financial analysts considered business activity to stay encouragingly resilient. What’s more, they suggested that the third-quarter surge would amount to 3%.
Market experts pointed to an acceleration in fresh order surge as well as a jump in backlogs of work because of weather-related disruptions. Besides this, underlying demand is still firm and there’s an accumulation of work, which is going to roll over into greater economic surge in the nearer future.
Apart from that, market experts drew attention to the fact that the upturn in hiring is a definite sign that nonfarm payroll creation could potentially top 200,000 already in September.
As for negative moments, financial experts told that prices were significantly backed. As a result, they demonstrated the steepest rate observed for at least nine years.
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