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Summary – August 01

LATAM
  • On Thursday, Chile will publish June economic activity data, while latest PMI data will also be released around the region. Argentina tax revenue and Mexico remittances will also cross, while Banxico will publish its latest economist survey. In the US, weekly US jobless claims are due as well as the July manufacturing ISM - both of which will be carefully watched for clues ahead of tomorrow's NFP, at which markets anticipate the US adding 175k jobs over the month.
  • Global news:
    • US (MNI) – The immediate reaction to the FOMC’s July decision was slightly hawkish, with the Committee defying some expectations of revised forward guidance in the Statement that would strongly imply a September rate cut. But the language and tone of Chair Powell’s press conference provided sufficient dovish assurances that the bar to cuts in the near future is low, and he explicitly noted that easing "could be on the table as soon as September".
    • ISRAEL (MNI) – The Israeli Defence Forces have confirmed that the commander of Hamas' military wing, Mohammed Deif, was killed in an airstrike on Khan Younis, Gaza on 13 July. Deif was one of the founders of the Qassem Brigades in the 1990s and for many years was one of Israel's top targets for assassination. Alongside Hamas' leader in Gaza, Yaha Sinwar, Deif was viewed as one of the top orchestrators of the 7 October attack on Israel.
    • CHINA (MNI) – China's Caixin manufacturing PMI registered 49.8 in July, down by 2.0 points from June, marking the first contraction below the 50 mark since November 2023, the financial publisher said on Thursday. The production sub-index remained within the expansion range for nine consecutive months, but only slightly above 50 in July. The new orders sub-index fell into the contraction range for the first time since August 2023.

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