WIKIFX REPORT: This week we expect the PMI

The Service PMI release is published monthly by Markit Economics. The data are based on surveys of over 400 executives in private sector service companies.

While speaking on the matter, at the Jackson Hole Symposium, Fed Chairman Powell reiterated the need for tight monetary policy for some time to reduce inflation. Money markets are now pricing in a 70% chance that the Fed will raise rates by 75 bps at its September meeting, Reuters reported.

U.S. equity markets declined for the third consecutive week, as stronger-than-expected job gains in August could strengthen the Federal Reserves case for more aggressive interest rate hikes to counter inflation. For the week, the Dow and S&P 500 declined 3%, while the Nasdaq contracted over 4%.

MARKETS

Money markets are now pricing in a 70% chance that the Fed will raise rates by 75 bps at its September meeting, Reuters reported. Meanwhile, hawkish comments from some ECB members also raised bets that the central bank will hike rates by 75bps next month, sending the German 10-year Bund to 2-month highs above 1.5. %. Bond yields in Australia (+3.7%) and Japan (+0.24%) also reached levels not seen since late June.

US stock futures fell sharply on Monday, extending losses from late last week after Federal Reserve Chairman Jerome Powell signaled the central bank's commitment to curb inflation with higher interest rates, even at the risk of some financial pain. Dow futures fell 0.9%, S&P 500 futures fell 1.1% and Nasdaq 100 futures fell 1.5%.

Last week On Friday, the major averages tumbled and erased all gains made in August, with the Dow and S&P 500 shedding 3.03% and 3.37%, respectively. The Nasdaq tech composite also sank 3.94% in its worst day since mid-June. Powell said that while controlling inflation with higher interest rates, slower growth and weaker labor market conditions would hurt households and businesses, “failing to restore price stability would mean far greater pain.” Investors are now expecting more speeches from other Fed officials this week, as well as the US Labor and Manufacturing PMI reports for August.

COMMODITIES

Gold prices weakened over $1,730 an ounce on Monday, hitting the lowest levels in a month, as US Federal Reserve Chairman Jerome Powell made a stern pledge to fight inflation with higher interest rates. in a policy speech at the Jackson Hole conference late last week. Powell strongly warned against premature policy easing amid data showing possible signs of peak inflation.

WTI crude oil futures traded at $93 a barrel on Monday, after a 2.9% gain in the previous week, as investors balance supply-side woes with fears that a prolonged global economic slowdown will affect fuel demand. In the past week, Saudi Arabia signaled potential OPEC+ production cuts to stabilize volatile markets, a move supported by Congo and Libya. Violent clashes between rival militias in the Libyan capital have stoked fears of further disruption to oil flows, with disruptions at a key export terminal for crude in Kazakhstan dragging on.

FOREIGN EXCHANGE

The dollar index appreciated past 109 on Monday, hitting its highest levels in 20 years, after Federal Reserve Chairman Jerome Powell made a stern pledge to reduce inflation by keeping interest rates higher for longer. in a policy speech at the Jackson Hole conference late last week.

The euro traded below $1, near 20-year lows, as concerns of a deep and prolonged recession in Europe more than offset prospects for higher interest rates from the ECB. Record energy prices in the region due to reduced supplies from Russia raise concerns that inflation will remain elevated while energy-dependent sectors,

Chilean Peso: The Chilean peso dollar continues its decline and has fallen below the area of $900 pesos, which indicates that it will most likely seek the area of $878 again, which has been the key support zone. resistance that the national currency has had.

A strong bearish figure is showing on 4hr charts which could indicate a break of this support and go looking for lower levels. But everything will be decided this Sunday the 4th when the votes on the new Magna Carta proposal take place.