US Opening

Written on 06/08/2023


Key Global Events

Euro Zone GDP contracted by 0.1 percent in the first quarter. Eurostat released the data reported on GDP. On a quarterly basis it contracted by 0.1 percent, on an annual basis gross domestic product growth was revised downward to 1 % from a forecast of 1.2 %. The big picture, is that the eurozone economy has remained essentially stagnant over the past two quarters, and analysts believe a new GDP contraction is likely in the second quarter as the effects of monetary tightening continue to be felt. Europe may have entered recession.

On the U.S. front, unemployment claims increase to 261K from a forecast of 235K and a previous figure of 233K. There are 6 days until the next FOMC meeting to make a decision on raising the interest rate.

Turkish lira collapses to record lows. After the re-election of President Tayyip Erdogan, the USD/TRY cross gained more than 8% on Wednesday.

Major European stock markets continue the day on the upside. Milan's FTSE MIB, the best, gaining +1.18%, Paris' CAC +0.37%, Madrid's IBEX +0.42%, London's FTSE -0.05%. Wall Street futures trade in mixed territory within minutes of the opening of U.S. stock markets indicating a possible uncertain start. Dow Jones -0.09%, S&P500 +0.05% and Nasdaq +0.23%.

Forex & Commodities

The dollar sinks with the release of the macro data. EURUSD cross +0.45%, GBPUSD +0.34%. Among commodities, oil trades around $73 a barrel (+0.39%). Gold trades at 1974 $ an ounce (+0.79%).

Index

Asia's markets were trading mixed. Japan's GDP rose to +0.7%. Tokyo's benchmark Nikkei 225 index retraced after last days rally closing at -0.85%. China's Hang Seng index closed trading at 19,299 trading at +0.25%.

Global Macroeconomic Data 

US - US weekly crude oil inventories will be released at 5 pm.