China, US, EU Manufacturing Melts , Australia GDP growth drops 50%

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OMENS : China, US, EU Manufacturing Melts , Australia GDP growth drops 50%

QUOTE: A leader is one who knows the way, goes the way, and shows the way

MARKET PULSE Manufacturing in the U.S. grew in Aug at the slowest pace since May 2013 US ISM Manufacturing index fell to 51.1, lower than forecast & from 52.7 in July US ISM new orders index at a 2-year low of 51.7 from 56.5 in July US ISM employment index fell d to a 4month low of 51.2 from 52.7 US exports matched the weakest reading since April 2009 US export Index fell by 1.5 pts to 46.5 in Aug lowest since 2008 US Manufacturing : Record inventory building in the first half of 2015 Inventories piled up H1 of 2015,( biggest quarterly rise) to $121.1 b annualized US Fed Rate Hike Probability: Sep at 32 % vs 40 % in Jul, Dec hike at 59 % China: Govt official factory gauge dropped to a 3-year low in Aug Data showed Chinese manufacturing at a 3-year low. EU Manufacturing: signaled a divergence in the German and French economies Manufacturing PMI EU: Germany expanded and a French showed contraction Today: Euro-zone PPI, Spain unemployment IMF's Lagarde says global growth outlook weaker than July forecast SNB President Jordan says Swiss franc 'markedly overvalued' Australia's economy grows at half pace of forecast on China woes Global CB reserves seen declining in coming years: Deutsche Bank API: Oil Inventories rose by 7.6 m barrels through Aug. 28 Forecast : US oil Inventories rose by 900,000 barrels last week Forecast : U.S. crude stockpiles expanded to 451.7 m barrels last week Iran Oil Minister : Plans to pump 3.8 million to 3.9 m barrels/ day by March Iran Oil Minister Zanganeh: Will boost output by 1 m barrels a day after sanctions Ian Taylor CEO Vitol :Crude will trade between $40 to $60 in 2016 India to exempt foreign funds from minimum alternative tax Funds sold net $2.6 b in stocks (Aug) biggest outflow since Oct. 2008 India FM Jaitley says he's not happy with 7% GDP growth BoTM: RBI not likely to cut rates despite moderation in CPI Holdings in gold ETF rose to a 1M high on Aug. 28 , Saw a 6Y low on Aug 11th INR MARKETS INR drops 0.1% at 66.2550 per USD 1-month volatility drops 1 bp to 7.64%; Average for past 12M is 6.7459% INR 1 Month forwards steady at 66.68 per USD USD/INR Pivot point at 66.2883; support at 66.1166, 66.0158 & 65.7433 USD/INR resistance at 66.3891, 66.5608 & 66.8333 USD/INR holding above 10-day moving average at 66.1351 FACTORS India to exempt foreign funds from minimum alternative tax Global investors sold net $84m of Indian stocks on Aug. 31 Funds sold net $2.6 b in stocks (Aug) biggest outflow since Oct. 2008 India leading equity index Sensex fell 2.2% yesterday Finance Minister Jaitley says he's not happy with 7% GDP growth BoTM: RBI not likely to cut rates despite further moderation in CPI FOREIGN EXCHANGE MARKETS USD/JPY +0.68% at 120.18 (range 119.22-120.46) EUR/USD -0.29% at 1.1282 (range 1.1261-1.1319) AUD/USD +0.19% at 0.7032 (range 0.6982-0.7035) USD/CAD -0.24% at 1.3227 (range 1.3226-1.3260) GBP/USD +0.08% at 1.5316 (range 1.5291-1.5320) USD/CHF +0.25% at 0.9612 (range 0.9582-0.9634) U.S. Treasuries flat , with 10-year yield up 1 bp at 2.161% FACTORS Manufacturing in the U.S. grew in Aug at the slowest pace since May 2013 US ISM Manufacturing index fell to 51.1, lower than forecast & from 52.7 in July US ISM new orders index at a 2-year low of 51.7 from 56.5 in July US ISM employment index fell d to a 4month low of 51.2 from 52.7 US exports matched the weakest reading since April 2009 US export Index fell by 1.5 points to 46.5 in Aug, matching July 2012 lowest since 2008 US Manufacturing : Record inventory building in the first half of 2015 Inventories piled up H1 of 2015,( biggest quarterly rise) to $121.1 b annualized China: Govt official factory gauge dropped to a 3-year low in Aug EU Manufacturing: signaled a divergence in the German and French economies. Manufacturing PMI EU: Germany expanded and a French showed contraction Today: Euro-zone PPI, Spain unemployment IMF's Lagarde says global growth outlook weaker than July forecast SNB President Jordan says Swiss franc 'markedly overvalued' Australia's economy grows at half pace of forecast on China woes Global CB reserves seen declining in coming years: Deutsche Bank GOLD MARKETS Gold spot fell 0.2 % to $1,138 early Asian hours Gold rose 1.4 % in the previous 3 days to $1,140.27 on Tue ( Aug. 25 high) Gold futures Dec lost 0.2 % to $1,137.70 China : Gold fell 0.3 % to 234.01 CNY/ gram ($1,143.61/ounce) on SGE Silver spot fell 0.3 % to $14.5690 FACTORS Asian stocks extended a global rout on concern over China's slowdown Data showed Chinese manufacturing at a 3-year low. US Fed Rate Hike Probability: Sep at 32 % vs 40 % in Jul, Dec hike at 59 % Holdings in gold ETF rose to a 1M high on Aug. 28 , Saw a 6Y low on Aug 11th CRUDE OIL MARKETS WTI fell below $45 a barrel WTI Futures slid 3.4 %, extending Tuesday's 7.7 % decline WTI Oct fell $1.55 to $43.86 trading at $44.44 at Asia open WTI Oct fell $3.79 to $45.41 on Tuesday. The volume of all futures traded was double the 100-day average. WTI YTD prices have decreased 17 % Brent Oct fell $1.10, or 2.2 %, to $48.46 Brent Oct fell $4.59 to $49.56 on Tuesday Brent traded at a premium of $4.31 to WTI. FACTORS API: Oil Inventories rose by 7.6 m barrels through Aug. 28 Forecast : US oil Inventories rose by 900,000 barrels last week Forecast : U.S. crude stockpiles expanded to 451.7 m barrels last week Iran Oil Minister : Plans to pump 3.8 million to 3.9 m barrels/ day by March Iran Oil Minister Zanganeh: Will boost output by 1 m barrels a day after sanctions Ian Taylor CEO Vitol :Crude will trade between