• US stocks plunge as tech sell-off continues
• US jobless rate drops more than expected
European equities finished final session of the week lower, tracking Wall Street as the tech sell-off continued. Also, recent PMI data showed mixed picture of the Eurozone's construction sector. Figures for Germany showed the construction sector shrank for the 6th month and factory orders rose much less than expected, while in Italy construction sector increased for the fourth month in a row. Also rising number of new coronavirus cases weighed on market sentiment. Spain reported 8,959 new infections and UK recorded 1,940 new cases on Friday, the highest since end of May. On the political front, the EU is considering fresh sanctions on Russia following the poisoning of Alexei Navalny. During today's session DAX 30 fell over 1%, while both CAC 40 and FTSE 100 finished 0.9% lower. For the week, the DAX dropped 1.8%, CAC 40 declined 0.8%, FTSE 100 lost 2.8%.
US indices extended declines on Friday, with the Nasdaq on track for its worst two-day fall since March as the tech sell-off continues. Today there are reports of SoftBank, which was allegedly "moving" the Nasdaq index. The Japanese financial conglomerate was supposed to buy call options in a move that stoked the fevered rally in big tech stocks before a sharp pullback on Thursday. The increase in the value of the call option positions, which was observed in recent weeks, was a high-profile topic and many companies (such as Tesla or Apple) enjoyed great interest from investors, and hence a huge increase in the share price.
Also mixed data from the US labour market weighed on investors moods. Unemployment rate fell to 8.4%, well below analysts' expectations of 9.8% while the economy added 1.371 million jobs, compared to forecasts of 1.4 million. However the number of people in the U.S. seeing permanent job losses rose by about half a million to 3.4 million, the highest level since 2013. Wall Street is set to finish the week lower after a near 3% increase in the previous week. US markets will be closed on Monday for the Labor Day holiday.
NZDUSD – recently pair broke below and retested the major support at 0.6714. Should downbeat moods prevail, next support at 0.6603 may come into play. This level is additionally strengthened by 50 MA (green line). Source:xStation5The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
