October Daily Review - 01/10

 

1. The world economy lost momentum in September, with China's vast factory sector shrinking again and euro zone manufacturing growth weakening slightly, both casualties of waning global demand. The latest business surveys across Asia and Europe paint a darkening picture and are likely to prompt more calls for central banks around the world to loosen monetary policy even further.

2. Wall Street opened slightly higher on Thursday after surveys showed Chinese manufacturing activity was stronger than feared and investors awaited a raft of U.S. economic data.

U.S. weekly jobless claims data pointed to ongoing tightening in the labor market.

3. Manufacturing activity in the U.S. slowed again in September raising fears that the Federal Reserve could delay raising interest for longer, according to data on Thursday.

The Institute for Supply Management said its index of purchasing managers fell to 50.2 last month from a reading of 51.1 in August. Analysts had expected a more modest decline to 50.6.

4. The U.S. dollar dropped to one-week lows against its Canadian counterpart on Thursday, after the release of disappointing U.S. jobless claims data and as investors eyed an upcoming report on U.S. manufacturing activity.

5. Gold prices were trading at the lowest levels in more than two weeks on Thursday after data pointing to strong gains in U.S. private sector jobs growth last month underlined expectations for higher interest rates from the Federal Reserve.

 

 

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