The market takes breath after the long rally. What opportunities do traders have today?
American industrial output tacks on a bit, driven by factories
In July, American industrial output managed to ascend, backed by higher manufacturing output, which is an upbeat indication of economic surge in the United States.
On Wednesday, the key US bank told that industrial output managed to ascend by 0.1% in July after an upwardly updated 1% soar in June.
Market experts surveyed by Reuters had foreseen industrial output adding up to 0.3% the previous month after a previously uncovered 0.6% leap in June.
In July, manufacturing output inched up by 0.3%, which is in line with experts’ estimates.
Motor vehicle manufacturing jumped by 0.9%, while output of machinery extended by 0.6%, while computers as well as electronics soared by 1 .3%.
The data disclosed that American factories were weathering during the early days of another worsening of an American trade conflict with China. As a matter of fact, the current US presidential administration managed to lift duties on a range of China’s products in July, thus provoking retaliatory measures from the Chinese government on American exports.
Manufacturing, accounting for nearly 12% of the American economy, is still being underpinned by a firm domestic as well as global economy. However, a lot of market experts see a risk that escalating trade tensions could have business investment undercut.
Besides this, in July, mining output edged down by 0.3%. Gas and crude drilling slumped by 4.3%. As for utilities output, they inched down by 0.5% in July.
With overall industrial output reporting just a moderate leap, capacity utilization, a gauge of how fully businesses are utilizing their resources, stood still in July sticking with 78.1%.
Officials at the key US bank tend to closely watch capacity use measures for clues of how much "slack" remains in the American economy — how far surge has space to run before it get inflationary.
The United States will publish a weekly update on unemployment claims on July 9, at 15:30 MT time.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.