Weak data from the Eurozone deepened recession concerns, raising concerns that the global economy is slowing down. The fact that the manufacturing PMI announced in Germany at the beginning of last week was announced at the lowest level since June 2009 with 41.4 and that new export orders remained on the contraction side for a year were reflected to the European stock markets and Euro sales.
In addition to weak data, US stock markets have found their way through Trump’s statements and news that an investigation will be launched against Trump.
China’s exchange rate manipulation, indicating that Trump, at the same time they are doing intellectual property theft, he added. Trump’s attention to social media signaled that supervisory bodies could increase their investigation in this sector soon led to sales in technology stocks.
Following reports of Trump seeking outside help to stain his potential rival Joe Biden in the 2020 election without evidence, US House of Representatives Chairman Nancy Pelosi said Trump would be undermining national security and violating the US constitution, saying an official investigation would be launched against Trump. On Wednesday, Trump’s announcement that a deal with China that could end the 15-month-long trade war could be sooner than anticipated picked up some indices. However, 3 major US indices fell 0.26% to 1.13% on Friday after Trump reported news of new financial pressure tactics on Beijing, including the possibility of Chinese companies removing from US stock markets
The dollar index found support for Trump’s positive remarks on the US-China trade war, gaining a 0.71% premium on Wednesday, a sharp rise since March.
The pound declined after the Supreme Court rejected Boris Johnson’s proposal to remain closed for five weeks.
The LME copper closed its week of fluctuating in the $ 5711- $ 5815 band at $ 5762 at the horizontal / surplus despite the growing concerns about Chinese demand and the strong dollar.
Chinese markets will be closed due to National Day on 1-7 October.
In China, official manufacturing PMI data was announced at 49.8, above the previous data and expectations (49.5), while Caixin manufacturing PMI data was announced at 51.4, above 50.2. Although the LME copper rose in the early hours with the support of positive Chinese data yesterday, the dollar closed the day with a 0.89% loss as the dollar appreciated. LME copper, which has been under pressure from concerns about Chinese demand as well as the ongoing rise in the dollar, made a weak start to October today, down to $ 5630 due to the weak transaction volume due to the Chinese holiday.
China and the United States are expected to resume high-level trade talks in Washington next week. Some analysts say a provisional agreement could be reached by the end of this year, given that US President Donald Trump’s administration will endeavor to prevent the US economy from entering recession during the election year.
US stock indices ended last week with losses due to the news that the US could limit its portfolio investments in China and ended the day with a partial denial of this news yesterday.
The euro, which weakened against the US dollar yesterday due to weaker inflation data, fell today at 1.0895 after losing value.
In terms of macro data releases, we will monitor manufacturing and service PMI data to be announced in the Euro Area and the US in the coming week as well as employment data to be released in the US on Friday.