Observations / News
• DXY is +32bps. WTI is -42bps. US Nat gas is -467bps. Bitcoin is -50bps at $25.7k.
• US futures are lower w/ESU3 -19.25, HIWU3 is -116.00, and NQU3 -82.50.
September has arrived and everyone and their dog is talking about seasonality. Yep, the economic data (PMI services and composite) out of China and Europe certainly do not paint a positive picture as we make our way headfirst into September. Chinese developers gave back some of the two weeks of gains even as Country Garden confirmed that it had made payment on USD bonds. HSTECH names were under pressure as PMIs came in weaker than forecast. Europe has been a similar story this morning. We have had very disappointing PMI data from Spain, Italy, France, Germany, and EZ. Luxury goods are struggling and now approaching firm support after breaking the 200-day average. Consumer products and grocers are underperforming after JPM cut the sector.
US equity futures following Asia and Europe lower this morning. UST yields are resurgent after coming close to 4.0% last Friday (10Y sector). ZS reports this evening, and really the only key release today. The earnings calendar
is winding down. On the economic front, ISM services and PMI services and composite headline this week’s agenda.