Morning Report

August 30, 2023

“The US dollar weakened after job openings in July fell to 8.82 million from 9.16 million in June, the lowest since March 2021, however, it recovered some of its losses this morning as Investors are keenly awaiting further labour market information to gauge the direction of the Federal Reserve’s policies. Later today, Upcoming data from Spain, Germany, and the EC could influence the euro, while updates on the US Q2 GDP and August’s ADP job report are expected.”

Sam Cornford, Partner – Head of Trading


Main Headlines

The US Commerce Secretary highlighted concerns from American firms about China being “impossible” to innovate in due to punitive measures such as fines and raids making the business environment perilous. Gina Raimondo made these remarks as her team of US officials journeyed from Beijing to Shanghai, marking yet another visit by a high-ranking US official to China in the recent past. “Increasingly I hear from American business that China is uninventable because it’s become too risky, “she remarked.

This morning, the UK’s Financial Conduct Authority (FCA) announced a temporary halt in the listing of Superdry Plc’s (SDRY.L) ordinary 5 pence shares at the company’s behest. Superdry mentioned the postponement of their annual results and their collaboration with their auditing firm, RSM UK Audit LLP. The firm anticipates asking for the listing to be restored following the annual results’ release, expected by week’s end. Superdry has been seeking additional funding since April, grappling with liquidity issues and a subdued demand for its spring-summer collection amidst a cost of living surge.



Sterling is stronger against Euro and weaker against the Dollar this morning. The pound witnessed a surge against the dollar and euro, as market participants keenly anticipate remarks from the Bank of England’s Chief Economist, Huw Pill, expected later this week to provide insights into the bank’s forthcoming steps. Concurrently, Zoopla, a property platform, predicted this morning that the UK’s home purchases will decline by 21% this year, marking the lowest since 2012. This is attributed to escalating borrowing expenses. Zoopla expects house sales to be at 1.0 million this year, a decrease from 1.26 million the prior year, and notably down from the 1.48 million peak in 2021 due to attractive interest rates and tax reliefs during the pandemic.



Euro is weaker than most major currencies in the early morning trade. European Commission leader, Ursula von der Leyen, has nominated the departing Dutch Foreign Minister, Wopke Hoekstra, for the role of EU Commissioner overseeing climate action. Should his nomination be endorsed by both the Council and the European Parliament, Hoekstra will oversee the EU’s robust climate strategy targeting carbon neutrality by 2050. Von der Leyen, in an interview released on Tuesday, praised Hoekstra’s evident dedication to the European Union and his enthusiasm for the role.


The Dollar is well bid against most major currencies overnight. US employment opportunities in July saw the most significant reduction in over two years, pointing to a gradual slackening of the labour market and adding weight to the speculation that the Federal Reserve might maintain interest rates in the subsequent month. The Job Openings and Labour Turnover Survey (JOLTS) released by the Labour Department also indicated a dip in job resignations to figures noted early in 2021, suggesting Americans’ diminishing confidence in the employment scenario. These findings align with a recent survey by the Conference Board, which found consumer optimism regarding the labour sector cooling in August.



Wall Street witnessed a robust uptick, primarily due to notable growth stocks like Tesla and Nvidia, after a reduction in job vacancies solidified predictions of the US Federal Reserve holding off on interest rate increases. The S&P 500 experienced its most significant daily surge since 2 June, while the Nasdaq had its best day since 28 July, both reaching highs not seen in over a fortnight. This upswing was spurred by the Labor Department’s JOLTS data, indicating a decline in job opportunities for the third consecutive month, hinting at a relaxing labour market.

Main Economic Data/Central Banks/Government (All Times CET)

9:00 a.m.: Spain Aug. CPI
10:00 p.m.: Italy Aug. Consumer, Manufacturing Confidence
10:30 p.m.: UK July Mortgage Approvals
11:00 p.m.: Euro-area Aug. Economic Confidence
11:00 a.m.: Italy to sell bonds
11:30 a.m.: Germany to sell bonds
12:45 p.m.: Riksbank’s Breman speaks
1:00 p.m.: US MBA Mortgage Applications
2:00 p.m.: Germany Aug. CPI
2:15 p.m.: US Aug. ADP Employment
2:30 p.m.: US 2Q GDP; July Wholesale Inventories
4:00 p.m.: US July Pending Home Sales

Corporate Events

Earnings include Country Garden, Salesforce, Crowdstrike, Prudential, Okta, Delivery Hero, Ageas


To learn more about Ballinger & Co., please visit our website or our LinkedIn page.