Market Rout Deepens Globally: Will ISM Services Provide Relief?
| Action Insight Daily Report 8-5-24 |
Market Rout Deepens Globally: Will ISM Services Provide Relief? |
The global market turmoil showed no signs of easing as the week began, with Japanese stocks taking a severe hit during Asian session. Both the Nikkei 225 and Topix indices plunged by as much as nearly -10%, marking a -20% drop from their all-time highs on July 11. This selloff extended to the cryptocurrency market, where Ethereum fell more than -20% since Friday. In the currency markets, Yen and Swiss Franc continue to be the preferred safe havens amidst the chaos. On the other hand, Aussie and Kiwi are bearing the brunt of the selloff. Euro is currently outperforming both Dollar and Sterling, while Canadian Dollar is mixed in the middle. Investors are now anxiously awaiting US ISM services data, which could potentially exacerbate recession fears if the figures disappoint. Beyond the headline PMI reading, employment component will be closely scrutinized. Last week's increase in the unemployment rate triggered the Sahm Rule, a historically reliable recession indicator. Once the Sahm Rule threshold is breached, history suggests that the unemployment rate could rise rapidly.... |
USD/JPY Daily Outlook Daily Pivots: (S1) 145.40; (P) 147.59; (R1) 148.76; More... USD/JPY's decline accelerates further to as low as 142.17 so far today There is no sign of bottoming yet. Intraday bias stays on the downside for 140.25 support next. On the upside, above 146.40 minor resistance will turn intraday bias neutral and bring consolidations first, before staging another fall. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | BoJ Meeting Minutes | | 01:00 | AUD | TD Securities Inflation M/M Jul | 0.40% | 0.30% | | 01:45 | CNY | Caixin Services PMI Jul | 52.1 | 51.4 | 51.2 | | 07:45 | EUR | Italy Services PMI Jul | 53 | 53.7 | | 07:50 | EUR | France Services PMI Jul F | 50.7 | 50.7 | | 07:55 | EUR | Germany Services PMI Jul F | 52 | 52 | | 08:00 | EUR | Eurozone Services PMI Jul F | 51.9 | 51.9 | | 08:30 | EUR | Eurozone Sentix Investor Confidence Aug | -7.3 | | 08:30 | GBP | Services PMI Jul F | 52.4 | 52.4 | | 09:00 | EUR | Eurozone PPI M/M Jun | 0.30% | -0.20% | | 09:00 | EUR | Eurozone PPI Y/Y Jun | -3.30% | -4.20% | | 13:45 | USD | Services PMI Jul F | 56 | 56 | | 14:00 | USD | ISM Services PMI Jul | 51.4 | 48.8 |
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