Market Moving Fundamental Events


One of the key fundamental events that are going to take place today is the UK Manufacturing PMI. What else is going to affect markets’ movements today? Let’s find out with this 1 February Market Moving Fundamental Events analysis from Hotforex.

1 February, HotForex – Asian stock markets mixed, with Japan outperforming after a stronger than expected manufacturing PMI reading, that still left the yen lower. The Nikkei is up 1.684%, the Topix gained 1.84 and the ASX 200 closed with a gain of 0.87%, but Chinese stocks headed south, as the Caixin China manufacturing PMI held steady in January and investors remain cautious as the lunar new year comes into view.

European Market Outlook

Overall though Asian equities started February on a positive note after three days of sell-off and following a late recovery on U.S. markets after the FOMC seemed to set the stage for a rate hike in March yesterday with a statement that saw yields climbing higher.

The 10-year Treasury yield climbed to 2.75% before falling back and is currently at 2.729%, up 2.4 bp. 10-year JGBs are up 1.5 bp at 0.090%, but stock markets seem to be adapting to higher yields and U.S. stock futures are moving higher as are FTSE 100 futures.

FX Update

The has dollar has traded firmer in the wake of yesterday’s FOMC announcement, which brought the expected no-change decision in policy settings but was accompanied by upgrades in the Fed’s growth and inflation projections.

The narrow trade-weighted USD index (DXY) is up 0.6% from four-session yesterday’s low at 88.78, logging a high of 89.31. EURUSD has clocked a two-day low at 1.2384 and USDJPY has lifted to a one-week high of 109.61. Wall Street managed to recover from weakness seen in the initial wake of the Fed’s guidance, while Asian stock markets, outside the case of Chinese markets, rallied.

January manufacturing PMI reading out of Japan rose to 54.8 from 54.0, with new order growth at a four-year high, The Caixin manufacturing PMI for China met expectations at 51.5, unchanged from December.

Main Macro 1 February Market Moving Fundamental Events     

  •  Eurozone Manufacturing PMI – are likely to confirm preliminary numbers and confirm that while the headline rate fell back slightly in January, job creation remains strong.
  • U.K. Manufacturing PMI – expected to come in with a headline reading of 56.5 after 56.3 in December, and the construction PMI at 52.0 after 52.2 in the month prior
  • US ISM Manufacturing PMI – It’s likely to dip 0.5 points to 58.8 after jumping to 59.3 in December.

Disclaimer

This article about 1 February Market Moving Fundamental Events was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.

All information provided gathered from reputable sources. Any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. We assume no liability for any loss arising from any investment made based on the information provided in this communication.

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