Italy Revises Down Q2 GDP Contraction To 13%

Trading 02 oct 2020 Commentaire »

Italy's record economic contraction in the second quarter, caused by the impact of the coronavirus pandemic, was more severe than estimated earlier, revised figures from the statistical office ISTAT showed on Friday. Gross domestic product shrunk 13 percent from the first quarter and 18 percent from a year ago, revised data showed. Earlier, ISTAT had reported the quarterly contraction at 12.8 percent and the yearly decline at 17.7 percent. The Italian economy entered a severe recession after the government introduced strict measures to contain the spread of?coronavirus or Covid-19.

Revised data showed that private consumption declined 8.5 percent quarter-on-quarter and gross fixed capital formation fell 16.2 percent.

Imports and exports decreased 20.6 percent and 26.4 percent, respectively.

The carry-over annual GDP growth for 2020 is equal to -14.8 percent, ISTAT said.


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U.S. Factory Orders Climb Less Than Expected In August

Trading 02 oct 2020 Commentaire »

After reporting sharp increases in new orders for U.S. manufactured goods over the past few months, the Commerce Department released a report on Friday showing factory orders climbed less than expected in the month of August.

The Commerce Department said factory orders rose by 0.7 percent in August after soaring by an upwardly revised 6.5 percent in July.

Economists had expected orders to jump by 1.0 percent compared to the 6.4 percent spike originally reported for the previous month.

The report said orders for durable goods increased by 0.5 percent, while orders for non-durable goods climbed by 0.8 percent.

Meanwhile, the Commerce Department said shipments of manufactured goods edged up by 0.3 percent in August after jumping by 4.7 percent in July.

Inventories of manufactured goods were virtually unchanged in August after falling by 0.6 percent in the previous month.

With inventories and shipments both little changed, the inventories-to-shipments ratio for August was unchanged from July at 1.43.


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U.S. Consumer Sentiment Improves More Than Initially Estimated In September

Trading 02 oct 2020 Commentaire »

Revised data released by the University of Michigan on Friday showed consumer sentiment in the U.S. improve by more than previously estimated in the month of September.

The report said the consumer sentiment index for September was upwardly revised to 80.4 from the preliminary reading of 78.9. Economists had expected the index to be upwardly revised to 79.0.

With the bigger than expected upward revision, the consumer sentiment index is well above the final August reading of 74.1.

"Consumer sentiment continued to improve in late September, with the Sentiment Index reaching its highest level in six months," said Surveys of Consumers chief economist Richard Curtin. "The gains were mainly due to a more optimistic outlook for the national economy.

"While consumers have anticipated gains in the national economy ever since the April shutdown, the September survey recorded a significant increase in the proportion that expected a reestablishment of good times financially in the overall economy," he added.

Curtin called the recent gains encouraging but noted they were largely due to upper income households, with data indicating lower income households face continued income and job losses.

The report showed the index of consumer expectations for September was upwardly revised to 75.6 from 73.3. The index came in at 68.5 in August.

The current economic conditions index for September ticked up to 87.8 from the preliminary reading of 87.5 and compares to a reading of 82.9 in the previous month.

On the inflation front, the report said one-year inflations expectations tumbled to 2.6 percent in September from 3.1 percent in August, while five-year inflation expectations were unchanged at 2.7 percent.

The Conference Board released a separate report on Tuesday showing a much bigger than expected increase its reading on consumer confidence in the month of September.

The report said the consumer confidence index jumped to 101.8 in September from 86.3 in August, while economists had expected the index to rise to 88.8.


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Hungary July Trade Surplus Revised Lower

Trading 02 oct 2020 Commentaire »

Hungary's merchandise trade surplus for July was revised lower amid sharp revisions in the export and import declines, latest data from the Hungarian Central Statistical Office showed on Friday.

The trade surplus was revised down to EUR 207 million from the preliminary estimate of EUR 262 million. In the same month last year, the surplus was EUR 78 million.

Exports value decreased 4.3 percent year-on-year and that of imports dropped 5.8 percent. Initially, the exports and imports declines were reported as 5.6 percent and 7.7 percent.

The surplus in the trade with EU countries grew to EUR 663 million, while the balance of trade with non-EU countries deteriorated to a deficit of EUR 456 million.


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Dollar Little Changed After U.S. Consumer Sentiment Index

Trading 02 oct 2020 Commentaire »

The University of Michigan's final consumer sentiment index for September and factory orders for August have been released at 10:00 am ET Friday. After the data, the greenback changed little against its major opponents.

The greenback was trading at 105.29 against the yen, 0.9206 against the franc, 1.1714 against the euro and 1.2933 against the pound around 10:02 am ET.


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*U.S. Consumer Sentiment Index Upwardly Revised To 80.4 In September

Trading 02 oct 2020 Commentaire »

U.S. Consumer Sentiment Index Upwardly Revised To 80.4 In September


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*U.S. Factory Orders Climb 0.7% In August

Trading 02 oct 2020 Commentaire »

U.S. Factory Orders Climb 0.7% In August


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Dollar Steady Before U.S. Consumer Sentiment Index

Trading 02 oct 2020 Commentaire »

The University of Michigan's final consumer sentiment index for September and factory orders for August are due at 10:00 am ET Friday. Ahead of the data, the greenback held steady against its major opponents.

The greenback was worth 105.28 against the yen, 0.9205 against the franc, 1.1712 against the euro and 1.2928 against the pound as of 9:55 am ET.


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Dollar Mixed Following U.S. Nonfarm Payrolls Data

Trading 02 oct 2020 Commentaire »

The U.S. dollar came in mixed against its major counterparts in the European session on Friday, after a data showed that the nation's job growth slowed much more than expected in September amid the persistence of the pandemic and deadlock over stimulus package.

Data from the Labor Department showed that non-farm payroll employment rose by 661,000 jobs in September after spiking by an upwardly revised 1.489 million jobs in August.

Economists had expected employment to increase by 850,000 jobs compared to the jump of 1.371 million jobs originally reported for the previous month.

The unemployment rate slid to 7.9 percent in September from 8.4 percent in August. The unemployment rate was expected to dip to 8.2 percent.

The House of Representatives passed a $2.2 trillion coronavirus stimulus plan on Thursday night. The bill will go to the Republican-held Senate and could be rejected.

House Speaker Nancy Pelosi said that Democrats and the Trump administration still remained apart on issues including funding for state and local governments.

The safe-haven dollar strengthened in the Asian session as U.S. President Donald Trump contracted COVID-19.

The greenback held steady against the yen, after falling to a 9-day low of 104.94 at 1:45 am ET. The pair had closed Thursday's deals at 105.50.

Data from the Cabinet Office showed that Japan's consumer confidence improved to the highest level in seven months in September.

On a seasonally adjusted basis, the consumer confidence index increased to 32.7 in September from 29.3 in August.

The USD/CHF pair hovered at a 2-day high of 0.9219. At yesterday's trading close, the pair was quoted at 0.9185. Should the greenback strengthens further, it is likely to test resistance around the 0.94 region.

The greenback remained higher against the euro, with the pair trading at 1.1707. This may be compared to a 2-day high of 1.1696 set at 1:00 am ET. The pair was worth 1.1744 when it closed deals on Thursday. Next key resistance for the greenback is likely seen around the 1.14 level.

Flash data from Eurostat showed that Eurozone consumer prices declined for the second straight month in September.

Consumer prices decreased 0.3 percent on a yearly basis, following a 0.2 percent drop in August. Prices were expected to fall again by 0.2 percent.

The greenback dropped to 1.2954 against the pound, from an early high of 1.2837, and held steady afterwards. The pound-greenback pair had ended yesterday's trading session at 1.2884.

The U.S. factory orders for August and University of Michigan's final consumer sentiment index for September will be featured shortly.


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U.S. Job Growth Slows Much More Than Expected In September

Trading 02 oct 2020 Commentaire »

Job growth in the U.S. slowed by much more than expected in the month of September, according to a closely watched report released by the Labor Department on Friday.

The Labor Department said non-farm payroll employment rose by 661,000 jobs in September after spiking by an upwardly revised 1.489 million jobs in August.

Economists had expected employment to increase by 850,000 jobs compared to the jump of 1.371 million jobs originally reported for the previous month.

"Job growth is moderating just as fiscal aid is expiring - a toxic cocktail," said Kathy Bostjancic, Chief U.S. Financial Economist at Oxford Economics. "Despite relatively strong growth since May, employment remains a staggering 10.7 million below the pre-Covid level."

She added, "The slowing momentum in the labor market bodes poorly for the broader recovery and points to increasing scarring effects from the crisis."

The weaker than expected growth was partly due to a sharp pullback in government employment, which tumbled by 216,000 jobs in September after soaring by 467,000 jobs in August.

The steep drop in government jobs was mainly in state and local government education, although the number of temporary census workers also declined.

Meanwhile, employment in the leisure and hospitality sector surged up by 318,000 jobs. Notable job growth was also seen in the retail, health care and social assistance, and professional and business services sectors.

Despite the weaker than expected job growth, the report said the unemployment rate slid to 7.9 percent in September from 8.4 percent in August. The unemployment rate was expected to dip to 8.2 percent.

The bigger than expected drop in the unemployment rate came as the labor force shrank by 695,000 persons, while the household survey showed employment rose by 275,000.

The unemployment rate continued to decline from the post-World War II record high of 13.5 percent in April but remains well above the 50-year low of 3.5 percent seen late last year.

The report said average hourly employee earnings edged up $0.02 or 0.1 percent to $29.47. Annual wage growth inched up to 4.7 percent in September from a revised 4.6 percent in August.


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