The weekend’s financial press were awash with articles discussing Chairman of the Federal Reserve Ben Bernanke’s Jackson Hole speech on Friday. Bernanke’s comments were sufficiently dovish, and led US equity markets to close with gains on Friday, with Gold and Silver benefiting from the prospect of QE3.
The official China PMI for August was released on Saturday while the markets were closed, and printed a week figure of 49.2, below the pivotal 50.0 expansion level and spooked Asian markets overnight. However concerns of a Chinese hard landing were eased as, China’s official non-manufacturing PMI rose to 56.3 from 55.6 in July.
When Mario Draghi pulled out of the Jackson Hole meeting last week stating his “workload” speculation began to build as to an impending announcement this Thursday at the ECB meeting. Traders are likely to await the ECB policy meeting amid hope that Draghi will do “whatever it takes to save the Euro”.
Today is also the first trading day of the September, with many in the City back from their summer vacations, so hopefully there will be increased trading volumes. Be aware that on Friday is the monthly US employment figure Non-Farm Payrolls.
Today is a public holiday in the US (Labor Day) and some futures markets will have different trading times, if you are an Abshire-Smith client please check your emails for further details.