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