US Factory Activity Shrinks the Most in a Decade
United States ISM Purchasing Managers Index (PMI)
September 2019’s, Institute for Supply Management (ISM) Purchasing Management Index (PMI) dropped to a ten-year low of 47.8, from 49.1 in the previous month. Falling short of market expectations of 50.1.
With the manufacturing sector having the steepest month of contraction since June 2009, amid ongoing trade tensions between China and the United States.
On the back of this announcement, Gold climbed from monthly lows at the $1,461 per ounce mark to above $1,480. This marks a slight retracement from the recent falls in Gold, mainly caused by the Golden week (national weekly holiday) in China, where historically the price of Gold becomes weaker as Chinese traders take some time off.
Moving into the week, should the market close above the $1,483 this is a positive affirmation of bulls coming back into this trade to potentially aim at the $1,500 per ounce mark again.
This week’s jobless claims data has hit unprecedented numbers. The number jumped to 3.28 million. Initial expectations of 1-1.5 million, which was still a very high estimate, were blown out of the water.
The New Zealand Dollar is fighting it’s way back up as the country enters it’s first official day of nationwide lockdown. It posted a 0.67% gain for the trading day, up to 0.58390 cents against the US Dollar. Just a week ago the NZD had dropped to 0.56, and looked ready to hit the 55 cent mark, as news broke of Air New Zealand’s layoffs.
The Nikkei 225, or Japanese Stock Index had an 8% gain for the day, following on from its 7% gain from the previous day. Less than a week ago the Nikkei had just hit lows not seen since 2017, falling below 20,000 points. However in just 2 days it has made back its losses and is now rapidly on the rebound back to the 20,000 mark.
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