Cars: The Latest Driver?
Ashraf Laidi | Oct 05, 2017 01:00AM ET
Stepping back momentarily from central banks and macro data, could the best month for US automakers since 2005 mean consumers are finding another gear? ADP slowed to 135K in September (meeting expectations) from a revised 228K partly due to the hurricanes. All currencies are up against USD since the close of Tuesday's NY session, with gold and GBP in the lead, CHF and CAD at the bottom. GBP got a lift from better-than-expected services PMI, keeping alive hopes of a November BoE hike. We turn to the US services ISM at 15:00 and Yellen's speech at 20:15 London time.
US auto sales smashed expectations in September with sales at an 18.57m pace, up from 16.14m in December and beating the 17.4m estimate. Optimists will say consumers are opening their wallets, buoyed by a better jobs market and hopes for a tax cut. Pessimists will sale say that replacements after hurricane Harvey simply took place more-quickly than anticipated.
The Fed's bias is to see good news as real and bad news as temporary so the numbers are more likely to strengthen the case for a December rate hike, especially because the buying wasn't entirely limited to hurricane-hit areas. Odds of a December Fed hike remain little changed at 70%. Yellen's speech today fires up an avalanche of speeches from Fed members this week (Williams, Harker, George, Bostic, Dudley, Kaplan and Bullard).
S&P 500 hit yet-another record high, climbing 5 points to 2534. NASDAQ is now at 4800.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.