Quick Brief – ISM manufacturing survey fails to please the Fed hawks
- ISM manufacturing survey prints at 47.2, below forecasts
- Employment subindex erases the August improvement
- Stocks are firmly in the red, smaller reaction in euro/dollar
The ISM manufacturing survey printed at 47.2, below market forecasts for a small improvement. Interestingly, the important employment subindex resumed its downward trend, with the remaining subcomponents also failing to improve.
Additionally, the final print of the September PMI manufacturing survey edged higher but remains stuck below its 50 threshold. On the flip side, the JOLTS job opening indicator managed to defy its recent trend and print again above the 8m level.
These data prints come amidst the debate about the size of the next Fed rate cut. Chairman Powell suggested that the Fed would likely stick with 25bps rate cuts moving forward, with a total of 50bps of easing announced by year-end. This has forced the market to reconsider the possibility for a 50bps at the November 7 meeting, but figures like the ISM manufacturing survey could put this option back on the table.
Euro/dollar remains in the red, but equities seem to have taken this ISM manufacturing release more seriously. Coupled with rumours for an imminent Iranian attack against Israel, the market momentum has turned negative.
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.