JOBS: US ADP Report points to good Payrolls Friday, Last major data before Fed Sep meet
QUOTE: Unless commitment is made, there are only promises and hopes; but no plans.
MARKET PULSE

  • US factory orders rose 0.4 % in July below forecast of 0.9 %
  • US nondefense capital goods orders fell to 1.0 % from 10.7 %
  • US Inventory rise caused 22 basis points rise in US 2nd Q GDP
  • US ADP employment report showing 190k new jobs being added in Aug
  • US ADP report suggests a relatively strong non-farm payroll (Fri)
  • Today: ECB rate decision; service PMIs across Europe
  • Draghi seen sharpening language as ECB fights fading inflation
  • EU's disjointed national laws may undermine capital markets push
  • Cameron risks Merkel clash as U.K. digs in over migrant crisis
  • Pound bulls suffer setback as prospect of U.K. rate boost fades
  • Goldman says China burning reserves no big deal for Treasuries
  • Australia's retail sales unexpectedly fall as economy slows
  • Canada officially goes into recession
  • India Composite PMIs for Manufacturing / Services Aug. (Prior 50.8,52.0)
  • Holdings in gold ETF fell 6.9 MT on Tue to 1,522.7 (July 31. Low)
  • Gold Assets have shrunk 11 % in the past year
  • EIA says crude supplies gained 4.67m bbl last wk while
  • Crushing stockpiles -388k to 57.3m, down 1st time in three wks
  • Refinery utilization rate at 92.8% vs. 94.5% previous wk
  • U.S. economy expanded in July and August, Fed's Beige Book says
  • Obama locked up enough Senate votes to protect the Iran nuclear deal
  • OPEC members want to see crude at $70 to $80 :Iran Oil Minister


INR
MARKETS

  • INR drops 0.1% to 66.2450 per USD
  • 1M volatility slips 6 bps to 7.48%; average for 12M is 6.7498%
  • INR 1 month forwards drop 0.1% to 66.67 per USD
  • USD/INR pivot point at 66.21
  • USD/INR support at 66.1075, 66.0200 & 65.8300;
  • USD/INR resistance at 66.2975, 66.4000, 66.5900
  • USD/INR holding above 10-DMA of 66.2048

FACTORS

  • Global investors sold net $102.7m of Indian stocks on Sep 1st
  • India's leading stock Index Sensex gains 0.6% today
  • India Composite PMIs for Manufacturing / Services Aug. (Prior 50.8,52.0)



FOREIGN EXCHANGE
MARKETS

  • USD/JPY +0.18% at 120.55 (range 120.31-120.70)
  • EUR/USD -0.05% at 1.1221 (range 1.1206-1.1228)
  • AUD/USD -0.30% at 0.7018 (range 0.7002-0.7063)
  • USD/CAD -0.05% at 1.3262 (range 1.3261-1.3277)
  • GBP/USD +0.01% at 1.5300 (range 1.5293-1.5313)
  • USD/CHF +0.01% at 0.9693 (range 0.9688-0.9707)
  • U.S. Treasuries gain, with 10-year yield down 1 bp at 2.174%

FACTORS

  • US factory orders rose 0.4 % in July below forecast of 0.9 %
  • US non-defense capital goods orders fell to 1.0 % from 10.7 %
  • US Inventory rise caused 22 basis points rise in US 2nd Q GDP
  • US ADP employment report showing 190k new jobs being added in Aug
  • US ADP report suggests a relatively strong non-farm payroll (Fri)
  • Today: ECB rate decision; service PMIs across Europe
  • Draghi seen sharpening language as ECB fights fading inflation
  • EU's disjointed national laws may undermine capital markets push
  • Cameron risks Merkel clash as U.K. digs in over migrant crisis
  • Pound bulls suffer setback as prospect of U.K. rate boost fades
  • Goldman says China burning reserves no big deal for Treasuries
  • Australia's retail sales unexpectedly fall as economy slows
  • Canada officially goes into recession



GOLD
MARKETS

  • Gold spot fell 0.1 % to $1,133.38 in early Asian hours
  • Gold lost 0.6 % on Wed, the first decrease in 4 days.
  • Gold futures Dec lost 0.1 % to $1,132.70
  • Silver spot flat at $14.6975

FACTORS

  • U.S. government payrolls report on Friday forecast to be positive
  • U.S. firms added more jobs in August than a month earlier- ADP Report
  • Holdings in gold ETF fell 6.9 MT on Tue to 1,522.7 (July 31. Low)
  • Gold Assets have shrunk 11 % in the past year



CRUDE OIL
MARKETS

  • WTI settles above $46 after swinging between gains and losses
  • Dec. WTI volatility falls from record.
  • Oct. WTI gains 84c to end at $46.25 with volume 77% above 100 days avg
  • Oct. Brent gained 94c to $50.50, volume +30%

FACTORS

  • EIA says crude supplies gained 4.67m bbl last wk
  • Crushing stockpiles -388 k to 57.3 m, down 1st time in three wks
  • Refinery utilization rate at 92.8% vs. 94.5% previous wk
  • U.S. economy expanded in July and August, Fed's Beige Book says
  • Obama locked up enough Senate votes to protect the Iran nuclear deal
  • OPEC members want to see crude at $70 to $80 :Iran Oil Minister