Breaking News
0

Top 5 Things to Know in the Market on Tuesday

EconomySep 03, 2019 06:14AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com -- Here are the top 5 things you need to know in financial markets on Tuesday, 3rd September.

  1. Wall Street set to reopen lower

U.S. stock markets are set to reopen lower after the long Labor Day weekend, during which new U.S. and Chinese import tariffs came into effect and China filed a formal complaint over the U.S. tariffs at the World Trade Organization.

Reports suggested that the two sides had failed to agree on a date for resuming talks over the weekend.

The official Chinese yuan exchange rate continues to weaken, while the dollar index, which tracks the greenback against a basket of developed market currencies, hit its highest since April 2017, a development that threatens to squeeze the international earnings of U.S. companies.

At 6 AM ET, the S&P 500 Futures contract and Dow Jones 30 Futures were both indicated down 1.0% and the Nasdaq 100 Futures contract was down 1.2%

The general risk-off mood is still clear in the bond market, where the 30-year Treasury bond continues to yield under 2%, and the benchmark 10-year note yield is still trading below the two-year's. A speech later by Fed hawk Eric Rosengren, whose opposition to further interest rate cuts is already on the record, is unlikely to change much.

  1. Sterling tumbles to 3-year low on political turmoil

The pound fell below $1.2000 to its lowest in three years after opposition lawmakers started a move to force Prime Minister Boris Johnson to abandon his plans to take the U.K. out of the EU at all costs on Oct. 31.

The opposition, led by the left-wing Labour Party, will try to pass a procedural motion later on Tuesday taking control of the daily agenda from the government. If it passes, that could lead to a vote forcing the government to request another three-month extension to the Brexit deadline from the EU.

Johnson said on Monday that he would see such a move as a vote of No Confidence and call an election (analysts suggest it would take place on Oct. 14, two weeks ahead of Brexit day).

  1. PMIs head light day for data

A generally light day for data is set to be dominated by the ISM manufacturing survey, which is due at 10 AM ET (1400 GMT).

Last month’s index reading of 51.2 was the lowest since President Donald Trump was elected in 2016. Analysts expect it to inch down to 51.1, still just above the 50 level that separates growth from contraction.

IHS Markit’s PMI for U.S. manufacturing, which already last month suggested the sector was in recession, comes out 15 minutes earlier.

4. Saudi Arabia replaces al-Falih as Aramco chair

Saudi Arabia relieved Energy Minister Khalid al-Falih of his duties as chairman of Saudi Aramco, replacing him with the head of the country’s sovereign wealth fund. The removal of a serving minister as chairman appears aimed at facilitating the initial public offering for Aramco, which was shelved last year due to governance concerns from potential western investors.

Reports have suggested that the kingdom’s revived IPO plan revolves around an initial domestic listing, to be followed by an international listing in Tokyo.

5. Oil falls as Hurricane Dorian aims at east coast

Oil prices fell, consistent with the broader risk-off mood elsewhere. On Monday, Bloomberg reported that OPEC members had increased their oil production for the first time this year in August, casting a shadow of doubt over the bloc’s self-imposed production restraints (official Russian data last week also showed an increase in output for August).

The U.S. benchmark blend WTI fell 1.5% to $54.26 a barrel, while the international benchmark Brent fell by 1.1% to $58.02.

On Friday, Baker Hughes’ oil rig count fell by another 12 to 742, the lowest since November 2017, pointing to increasing strains on shale producers. However, even though the rig count peaked nearly nine months ago, U.S. production still hasn’t started declining.

Hurricane Dorian, which briefly threatened the Gulf of Mexico last week, is meanwhile set to turn north, hitting the northeast coast of Florida, along with Georgia and South Carolina, according to the National Hurricane Center.

Top 5 Things to Know in the Market on Tuesday
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
manoj mahato
manoj mahato Sep 03, 2019 6:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If the market had closed in green what woluld be your 4 reason
Brady Murray
Brady Murray Sep 03, 2019 6:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Because it was green
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email