08Sep2016 Pre-Market Commentary: US Futures Flat Ahead Of US Data, Crude Prices Trading Sideways, US Dollar And Gold Very Volatile, Investors Alert For Sudden Market Movements
Written by Gary
US stock future indexes are once again flat (SPY +0.03) ahead of the opening bell. The European Central Bank left its key refi rate at zero, crude prices are higher higher after U.S. industry data yesterday's showed a large drawdown in crude stocks and the US dollar is declining sharply after the ECB's announcement.
Today's Economic Calendar
8:30 Initial Jobless Claims
|Here are the headlines moving the markets.|
The last week has seen both PMI and ISM surveys for both manufacturing and services economies in America collapse. The hope-strewn bounce in Q2 is officially dead and leading this demise is a crash in employment components. So that leaves us, after today's near 40-year lows initial jobless claims print at 259k, asking The Department of Labor... please explain this...
And then there's this...
Submitted by Mike Krieger via Liberty Blitzkrieg blog,
Wall Street is an industry ...
As largely expected, the actual ECB press announcement did not contain major surprises, which saw the ECB keep all three key rates unchanged, adding that "the monthly asset purchases of 80 billion are intended to run until the end of March 2017, or beyond, if necessary" and that it expects "interest rates to remain at present or lower levels for an extended period of time, and well past the horizon of the net asset purchases."
There was some modest kneejerk market disappointment, expressed in German 10Y Bunds whose yields rose 3 bps to -0.09%, after the ECB did not lower the -0.40% deposit facility rate, as some had whispered may happen.
Perhaps more importantly, there was no formal extension to the QE program, which kept its old deadline, and which means that the ECB will extend the duration at its December meeting as much of the sellside community had expected.
From the press release:
The market expectations for weekly initial unemployment claims (from Bloomberg / Econoday) were 261,000 to 270,000 (consensus 264,000), and the Department of Labor reported 259,000 new claims. The more important (because of the volatility in the weekly reported claims and seasonality errors in adjusting the data) 4 week moving average moved from 263,000 (reported last week as 263,000) to 261,250. The rolling averages generally have been equal to or under 300,000 since August 2014.
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