Market Commentary – September 7, 2021

Kevin Jock

7th September 2021

The US markets closed in yesterday due to the Labor Day holiday and it will reopen in today.

European equities had their biggest rise since late July on Monday as weaker-than-expected US job data suggested pandemic-era stimulus, which has helped prop up markets. The STOXX 600 index gained 0.7%, the best day in six weeks, while FTSE 100 index also ended the session 0.7% higher than last Friday.

Elsewhere in Asia, Japan’s Nikkei 225 index burst through the 30,000-point market in opening trading on this morning, hitting a five-month high as investors prepared for a ruling party leadership contest and national election. The Chinese shares rallied as well after government officials mentioned that they will continue to support private businesses despite a regulatory crackdown across the technology and education sectors, with the CSI 300 index climbed 1.2% during market close.

On the other hand, with the US markets closed, both the oil and gold remain in a holding pattern as the Brent crude closed almost unchanged at $72.1, while the gold is trading in a narrow range as well.


Figure 1 (Source: IS Prime) AUDUSD Daily : Following the rate decision from the RBA, AUDUSD hitting an intraday high of 0.7468 before quickly giving up those gains and falling back towards the 0.7400 level. The pair is set to struggle to break above resistance at around 0.7500 level.

Headliner to Review

  • The UK Construction PMI posted 55.2 in August, down from 58.7 in July, indicating activity has expanded in each of the last seven months. However, the rate of increase eased to the softest since February as restricted supply of materials and transport began to weigh on overall construction activity.
  • The August German Factory Orders statistics has also been released, 3.4% higher compared with July and beat market expectations of -0.9%.

Headliner to Watch

  • The Bank of Canada (BOC) will announce its rate statement on Wednesday, with the market consensus believe that it won’t result in any policy changes, but tapering should continue in October as BOC is well on the way to policy normalization.
  • We will also see the Bank of England (BOE) hold their monetary policy report hearings to testify on inflation and economic outlook.

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Antony Tan
Kerry Man