While about what event will highlight the day we rather cannot argue, but investors will not only focus on the FOMC. On Wednesday, February 1st we will deal with a large number of important macroeconomic readings of many economies. What today will be moving markets? Welcome to the morning market overview.
Although China is still officially celebrating (Lunar New Year in China is celebrated round week) yesterday evening, we have become familiar with the latest estimates of January PMI industry. The data surprised positively slowing down milder than expected by the market. Chinese manufacturing PMI in January amounted to 51.3 against a forecast of 51.2 and the previous reading of 51.4.
It’s hard to clearly define the impact of Chinese data on the markets due to the lack of activity in the Chinese Stock Market. Commentators, however, already estimated that the positive surprise can alleviate the potential impact of the first decisions of Donald Trump at the start of the stock exchange in Shanghai. Yesterday’s PMI should also support market situation of industrial raw materials, which sentiment worsened significantly after yesterday’s API report. According to the agency overall inventories of crude oil in the US increased by as much as 5.83 million barrels. If this value is confirmed by today’s EIA report, we will be able to talk about the problems with demand, which directly translate into the price of the raw material. Today, oil is around 55.50 USD:
For what it is worth paying attention to?
We will focus now only on the United States and the dollar. About 14:15 will be published small payrolls ADP report concerning changes in the level of employment in the US from non-farm sector. It is estimated that in January ADP ratio will be 165 thousand. to 153 thousand. published previously.
At 16:00 we will know the value of the US PMI index for the industry, according to the ISM. The forecast of this index are also quite optimistic and assume an increase to 55 points from 54.5 previously published.
Half an hour later, at 16:30 we will know the important data for all trading with oil. Then the US EIA will publish a report on stocks of raw materials and petroleum products remaining in American stocks.
The day will end with the most important event, that Fed’s decision on interest rates in America. The decision will be accompanied by publication of the FOMC statement.