Skip to content Skip to footer

U.S. Indices Start the Week Lower, Euro Weakens after Election Results in Germany & Brent Oil Climbs to 3-year High

S&P 500, NASDAQ lower to start the week

The S&P 500 and NASDAQ started this week lower, despite data from the United States showing a rise in business spending on equipment.

Data from the Commerce Department showed that Durable goods orders were 1.8% higher in August, versus the expected increase of 0.7%.

Overall, it was also shown that orders were up 16.4% on an annual basis, taking the sum to 18% above pre-pandemic levels.

Does this mean there is a positive outlook for the U.S economy?
While factory sector employment may not provide politicians the cover they need on the job creation front, they are still correct when they tout manufacturing’s crucial role in the economy. That’s because no sector does more to generate broad-scale economic growth — and, ultimately, higher living standards — than manufacturing.

This is a huge boost for the U.S. manufacturing sector, which currently accounts for close to 12% of the nation’s economy.

Despite this, the NASDAQ was 0.68% lower as of writing, with the S&P 500 falling by 0.37%.

Euro weakens, as social democrats edge elections

Over the weekend, Germans went to the polls, with the Social Democrats marginally coming out on top in a tightly contested election.

The left-leaning party edged out outgoing Chancellor Angela Merkel’s Conservative party, who had 24.1% of the vote.

EURUSD dropped to an intraday low of 1.1684, before recovering above 1.17 as it continues to hover close to multi-year lows, whilst the DAX 30 traded marginally higher.

Germany’s political landscape
If Scholz succeeds in forming a governing majority, he will be Germany’s first SPD chancellor since Gerhard Schroeder, who lost to Merkel by a whisker in 2005.

Leader of the Social Dems Olaf Scholz said he had a clear mandate to form a government due to his party’s 25.7% victory.

Despite this, conservative rival Armin Laschet has remained determined to contest the results.

Brent oil prices climb to 3-year high

Oil prices climbed to multi-year highs in today’s session, as a result of the supply crisis currently taking place in the UK.

Fuel pumps began to dry out due to a shortage of lorry drivers, which has come as a direct result of Brexit, which has impacted the movement of truckers.

Both Brent and Crude were higher to start the week, with Brent trading at its highest level since October 2018.

This came whilst WTI Crude hit an intraday high of 75.85, which is its highest level since early July.

Gas stations across the UK have begun rationing the sale of fuel in response to the current shortage.

Quote of the day – “Stocks are bought not in fear but in hope. They are typically sold out of fear.”

– Justin Mamis

Eliman Dambell

Senior Market Analyst


Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.