SHANGHAI, Aug. 31 (SMM) – Eurozone and regional unemployment and inflation, ADP employment for the US and July pending home sales are due for release today. The US dollar index strengthened overnight, while crude oil weakened. Base metals continued to diverge.
Inflation rates in Italy, eurozone and France are expected to improve, but will still remain low. In this context, the European Central Bank may continue to expand its easy monetary measures in the near future.
ADP’s employment in June and July were both upbeat. But August figures may slide as Markit flash manufacturing PMI in August for the US fell to a 4-month low. Meanwhile, Philadelphia Fed’s manufacturing employment sub-indice in August was poor.
US existing home sales in July should pick up further. Inventories in US property market were insufficient in June. When combined with faster growth in salaries, demand in the real estate sector should improve.
API’s crude oil inventories in the US grew further last week, with growth less significant than expected. NYMEX October oil fell slightly.
Boston Fed Chairman will speak today. Should his statement turn hawkish, market expectations of a Fed rate hike in the near term will strengthen.
