PA Market Report: Overview (Aug 02 – Aug 06) & Upcoming Events August’21

Aug 2

Manufacturing PMI at 59.5%; July 2021 Manufacturing ISM Report On Business (USA)

Economic activity in the manufacturing sector grew in July, with the overall economy notching a 14th consecutive month of growth, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®. The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The July Manufacturing PMI® registered 59.5 percent, a decrease of 1.1 percentage points from the June reading of 60.6 percent.

Aug 3

Statement by Philip Lowe, Governor: Monetary Policy Decision (Australia)

At its meeting today, the Board decided to: *maintain the cash rate target at 10 basis points and the interest rate on Exchange Settlement balances of zero percent *maintain the target of 10 basis points for the April 2024 Australian Government bond *Continue to purchase government securities at the rate of $5 billion a week until early September and then $4 billion a week until at least mid-November. The economic recovery in Australia has been stronger than was earlier expected.

AUD/USD jumps 35 pips as RBA keeps tapering on the table (Australia)

AUD/USD rises nearly 30 pips after the RBA’s hawkish announcement. RBA says to continue with tapering of the bond-buying program after early September. Market sentiment dwindles amid mixed clues concerning covid and stimulus. US Treasury yields pause after the lowest daily closing since February, stock futures print mild gains. AUD/USD takes the bids around 0.7396, up 0.40% intraday, ahead of Tuesday’s European session.

Aug 4

Labour market statistics: June 2021 quarter (New Zealand)

Key facts: In the June 2021 quarter, compared with the March 2021 quarter: • unemployment rate fell to 4.0 percent • underutilization rate fell to 10.5 percent • the employment rate rose to 67.6 percent. In the year to the June 2021 quarter: • wage rates increased 2.1 percent • average weekly earnings (for full-time equivalent employees (FTEs), including overtime) increased to $1,360.62 • average ordinary time hourly earnings rose to $34.76.

Private Sector Employment Increased by 330,000 Jobs in July (USA)

Private sector employment increased by 330,000 jobs from June to July according to the July ADP® National Employment Report™. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by the ADP Research Institute® in collaboration with Moody’s Analytics. The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally adjusted basis.

Clarida: Outlooks, Outcomes, and Prospects for U.S. Monetary Policy (USA)

With the release of the gross domestic product (GDP) data last week, we learned that the U.S. economy in the second quarter of this year transitioned from economic recovery to economic expansion.1 Given the catastrophic collapse in U.S. economic activity in the first half of 2020 as a result of the global pandemic and the mitigation efforts put in place to contain it, few forecasters could have expected—or even dared to hope—in the spring of last year that the recovery in GDP, from the sharpest decline in activity since the Great Depression,

US Services PMI at 64.1%; July 2021 Services ISM Report On Business (USA)

Economic activity in the services sector grew in July for the 14th month in a row, say the nation’s purchasing and supply executives in the latest Services ISM® Report On Business®. The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management® (ISM®) Services Business Survey Committee: “The Services PMI® registered another all-time high of 64.1 percent, which is 4 percentage points higher than the June reading of 60.1

Clarida: Surprised by size of bond yield decline (USA)


Aug 5

Monetary Policy Report, August 2021 (UK)

The Bank’s Monetary Policy Committee (MPC) sets monetary policy to keep inflation low and stable, which supports growth and jobs. Subject to maintaining price stability, the MPC is also required to support the Government’s economic policy. The Government has set the MPC a target for the 12-month increase in the Consumer Prices Index of 2%.

Bank Rate maintained at 0.1% – August 2021 (UK)

The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 4 August 2021, the Committee judged that the existing stance of monetary policy remained appropriate.

Aug 6

The Employment Situation — July 2021 (USD)

Total nonfarm payroll employment rose by 943,000 in July, and the unemployment rate declined by 0.5 percentage point to 5.4 percent, the U.S. Bureau of Labor Statistics reported today. Notable job gains occurred in leisure and hospitality, in local government education, and in professional and business services. This news release presents statistics from two monthly surveys.

Labour Force Survey, July 2021 (CAD)

July Labour Force Survey (LFS) data reflect labour market conditions during the week of July 11 to 17. Between the June and July reference weeks, many jurisdictions substantially eased public health restrictions affecting indoor and outdoor dining, recreation and cultural activities, retail shopping, and personal care services.

Upcoming Events

Aug 9

  • FOMC Member Bostic Speaks
  • JOLTS Job Openings
  • FOMC Member Barkin Speaks

Aug 10

  • NAB Business Confidence
  • ZEW Economic Sentiment
  • German ZEW Economic Sentiment

Aug 11

  • Westpac Consumer Sentiment
  • CPI m/m
  • Core CPI m/m
  • Crude Oil Inventories
  • FOMC Member Bostic Speaks

Aug 12

  • Inflation Expectations q/q
  • Prelim GDP q/q
  • PPI m/m
  • Core PPI m/m
  • Unemployment Claims
  • 30-y Bond Auction

Aug 13

Prelim UoM Consumer Sentiment

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