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JGB TECHS

(Z1) Bearish Trend Condition

AUSSIE 10-YEAR TECHS

(Z1) Bearish Price Sequence

AUSSIE 3-YEAR TECHS

(Z1) Off Recent Highs

US 10YR FUTURE TECHS

(Z1)‌‌ Support Appears Exposed

Solid PMI Report Across The Board

DATA REACT

A stronger-than-expected U.S. Aug Flash PMI reading across the board, with manufacturing 53.6 (v 52.0 expected) and services 54.8 (vs 51.0 expected). Manuf was the best reading since Jan 2019, with services the highest since Mar 2019 and the first rise in that sector since the start of the year.

Some excerpts from the IHS Markit release:

  • On client demand: "Total new business rose for the first time since February and at a solid rate...The reopening of economies worldwide also helped to boost new export orders, with foreign sales expanding at the sharpest pace since September 2014."
  • On employment: "The rate of job creation accelerated among service providers, with manufacturers indicating the first rise in staff numbers since February"
  • On inflation: "input price inflation quickened in August [on] raw material costs... Although manufacturers raised their selling prices at a faster pace, the rate of charge inflation among service providers eased amid reports of greater competitive pressures."
  • On the outlook: "Businesses remained optimistic towards the 12- month outlook for output, with the degree of confidence strong overall. That said, positive sentiment dipped slightly from July's recent high amid concerns surrounding the ongoing COVID-19 pandemic."
MNI London Bureau | +44 203-865-3807 | tim.cooper@marketnews.com