The market sentiment improved amid the slowdown in virus cases. Let's have a closer look at the AUD, S&P 500, gold and the GBP.
US orders for durable goods dive more than predicted in April
In April, orders for durable goods in the United States went down by about 1.7%, although the dive almost entirely took place due to the slump in contracts for Boeing aircraft. Most enterprises gained more orders and managed to increase their investments the previous month.
Market experts predicted a dive in orders for durable goods by about 1%. These are products designed for a lifetime of three years or so.
Perhaps, the best way to judge orders is to have the adverse impact of cars and aircraft excluded. Orders, with the exception of transport, rallied by up to 0.9%, and marked the third consecutive ascend.
The dive occurred due to the fact that orders for commercial aircraft headed south by nearly 29% the previous month after a 61% ascend in March. Apparently, contracts for expensive passenger aircraft often weave from month to month and can even surpass the size of new orders.
Orders for vehicles that soared by 1.8% in April might have a similar effect.
Orders for durable goods have ascended with the exception of these two categories.
Heavy equipment turned out to be the only exception – its orders went down by 0.8%. Additionally, it was the second consecutive tumble, probably a sign that the White House announcement of steel as well as other duties had inflicted damage.
What’s more – in April, investments in the business rebounded. A closely watched measure, known as orders for fixed assets, tacked on by about 1%, thus compensating a similar dip in March.
For the last 12 months, these orders have rallied by up to 7%, becoming a sign that businesses have ramped up spending after several years of weak investment.
In fact, businesses have a huge number of reasons to invest with or without US President’s recent tax cuts.
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…