This is what you need to know to trade today Wednesday, August 4:
Markets are cautiously upbeat despite the spread of the coronavirus in China and the tech issue. Today’s ADP private employment figures, ISM services PMI and a speech from the Fed Vice President stand out. NZD / USD is on the rise while cryptocurrencies are under pressure.
China faces its worst covid-19 spread since the disease originated in late 2019. Concerns about significant lockdowns weighed a bit on Asian stocks, but S&P 500 futures remain positive. Investors in the region are also concerned about Beijing’s ongoing hunt for big tech companies, with the current anger focused on the IT sector. video game.
On the other hand, the Caixin Purchasing Managers Index (PMI) for the services sector exceeded estimates with 54.9 points, showing that growth expectations remain solid.
The dollar is relatively stable in general, with the NZD / USD highlighting with an increase of 0.5% after reporting a 1% increase in employment and a drop in the unemployment rate to 4%.
It is expected that ADP’s private sector employment report show an increase of about 695,000 in July, similar to the 692,000 reported in June. While the numbers are not always well correlated with the official Non-Farm Payroll number, it tends to shake the markets.
US ADP Employment Report Preview for July: Service Sector Employment Growth May Slow Down
The second significant publication is the ISM services PMI, expected to remain stable above 60 but could disappoint as the manufacturing PMI. The employment component is of great importance, serving as the clue for Friday’s employment report.
The Vice Chairman of the Federal Reserve, Richard Clarida, He will speak later in the day, and it could provide clues as to how close the bank is to cutting back on its bond-buying scheme. Last week, the Fed seemed in no rush to act.
Bitcoin has been extending its gradual decline, dipping below $ 38,000, while Ethereum is hovering around $ 2,500 amid the next shift in the way Ether transacts.