{"id":3032,"date":"2023-08-24T08:43:20","date_gmt":"2023-08-24T07:43:20","guid":{"rendered":"https:\/\/hcfx.sofyma.com\/?p=3032"},"modified":"2023-08-24T08:43:21","modified_gmt":"2023-08-24T07:43:21","slug":"morning-update-17","status":"publish","type":"post","link":"https:\/\/hamiltoncourtfx.com\/it\/morning-update-17\/","title":{"rendered":"Morning Update"},"content":{"rendered":"
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UK PMIs Retreat at Fastest Rate Since January 2021<\/strong><\/p>\n

The volatility seen during yesterday\u2019s open continued throughout much of the session following the release of UK and US PMI figures released at 0930 and 1445, respectively. Here, UK PMIs came in considerably softer than expected, with a composite level of 47.9 marking the greatest contraction within the country\u2019s private sector since January 2021. This came as manufacturing PMIs softened to their lowest level in six months, hitting 42.5, while services slumped to 48.7. Along with last month\u2019s print, the weak service figure marked the greatest contraction of the index in over 30 months. Here, S&P\u2019s press release reaffirmed how UK private sector firms had shown a further decline in business activity, which constituted a buck to the trend of expansion seen over the last half-year.<\/p>\n

This contraction came as high inventory levels and tighter monetary conditions dampened demand. There is also some indication that improved supply chains have reduced business\u2019 inclination to stockpile. As CIPS\u2019 Chief Economist Dr John Glen, wrote \u201cHigh interest rates continue to cast a shadow over the UK economy, creating a lull in new orders, stunting output, and ensuring prospects for the private sector remain uncertain\u201d.<\/p>\n

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US PMIs Come in Softer-than-Expected<\/strong><\/p>\n

Following the trend of softer-than-expected PMI data from across the Atlantic, yesterday\u2019s data release indicated that US Composite PMI data fell to 50.4 against forecasts of 52. Service PMIs fell to 51 from 52.3, on the verge of stagflation, while Manufacturing declined to 47 from last month\u2019s 47 figures. Notable drivers behind the softer-than-expected figure was the Muted demand from key export markets \u2013 not least Europe \u2013 which fed into the drop in export orders over August. The report also noted that increased cost pressures from energy and labour fed into upward price pressures, raising concerns over the possibility for sticky inflation. That said, as one S&P economist wrote, \u201cone upside is that weak demand is starting to limit pricing power, which should help keep a lid on inflation around the 3% mark.\u201d US firms were recorded as being more optimistic over their economic forecasts for the next 12 months as inflation and interest rates stabilise.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n

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Prigozhin Dead<\/h2>\n <\/div>\n
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Yesterday, it was announced that Yevgeny Prigozhin \u2013 the leader of the Wagner mercenary group \u2013 was killed in a plane crash near the village of Kuzhenkino, north-west of Moscow. The Russian state newswire RIA Novosti reported that all 10 passengers were dead including Prigozhin and his right-hand man, Dmitry Utkin. The Kremlin is yet to confirm these details as speculation continues to mount over the crash and its implications.<\/p>\n

Prigozhin\u2019s death comes 18 months after his mercenary group assisted Putin in Russia\u2019s full-scale invasion of Ukraine and just two months after Prigozhin led a mutiny which seized control of two major southern Russian cities. Putin called Prigozhin\u2019s coup as \u201ctreasonous\u201d though allowed the Wagner leader to pull back to Belarus following a truce. As Bloomberg writes however, \u201cdescribed as a one-time confidante who was living on borrowed time, Prigozhin openly defied the terms of the truce.\u201d\u00a0<\/strong>Prigozhin death serves as another reminder of Putin\u2019s contempt for dissenters.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n

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Today in Focus<\/h2>\n <\/div>\n
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At 1500 today, all eyes will turn to the much-anticipated Jackson Hole Symposium where markets will be looking to gain further insight into central bankers\u2019 monetary policy, economic conditions, and financial trends. Powell will be speaking tomorrow ahead of Lagarde on Saturday as markets shift their attention to the next round of policy meetings in September. Today will also see the release of US durable goods orders and initial jobless claims, both released at 1330.\u00a0<\/span><\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"

Retreating UK PMIs, lower than expected US PMIs, Wagner mercenary leader dead, and what’s happening today.<\/p>","protected":false},"author":15,"featured_media":1086,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"rp-language":[16],"class_list":["post-3032","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-morning-updates","rp-language-en_gb"],"_links":{"self":[{"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/posts\/3032","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/comments?post=3032"}],"version-history":[{"count":9,"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/posts\/3032\/revisions"}],"predecessor-version":[{"id":3041,"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/posts\/3032\/revisions\/3041"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/media\/1086"}],"wp:attachment":[{"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/media?parent=3032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/categories?post=3032"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/tags?post=3032"},{"taxonomy":"rp-language","embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/rp-language?post=3032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}