By Geoffrey Smith
Investing.com — The dollar hits new highs as the euro weakens again. New home sales data for July is due and Fed’s Neil Kashkari is due to speak after the market close. Elon Musk wants to know about Jack Dorsey’s dossier on Twitter’s spam and bots, and the rise in crude prices after Saudi Arabia’s oil minister warned of production cuts to stem what he sees as unjustified weakness in the futures market. Here’s what you need to know about the financial markets on Tuesday 20 August.
1. EUR hits 20 year low as PMI points to recession )
USD to new 23 to new year highs*) as the euro falls again and the prospect of an energy-driven recession in the second half of the year grows.
EURO fell to $0 before cutting losses. The industry performed better than expected in August as supply chain bottlenecks eased.
However, this did not stop the composite PMI for these two *) Germany and France slipped into the contraction zone. Japan’s S&P manufacturing PMI 9902 also fell to February 9902 lowest level since.
2. US new home sales due; Fed Kashkari speaks later
Dollar strength Thanks in large part to the fading hopes of a dovish Fed approach to monetary policy. Instead, it is increasingly expected that Chairman Jerome Powell will be in Jackson Hole keynote speech) delivered on Friday that the Fed will continue to tighten policy.
If any of Powell’s colleagues feel disapproval when the economy shows signs of cooling, it’s likely to be Neel Kashkari , Minneapo Chairman of the Leith Fed, one of the most dovish members of the Fed’s policy-making committee. He will speak at 06: 06 Eastern Time (15: 00 GMT).
Red Book Research latest economic and July new home sales data Data will be before 06: 23 ET and 14: ET respectively.
3. Stocks set for a weak rebound on Zoom’s outlook
U.S. stocks are expected to open with a weak rebound after suffering their biggest one-day drop in eight weeks on Monday.
go through06: 15 Eastern Time Dow Jones Futures 9902 up 47 points, or 0.1%, while S&P 9902 Futures and Nasdaq 500 Futures both rose 0.2%. The main cash index fell 1.9% to 2.6% on Monday.
Zoom Video (NASDAQ: ZM’s slashing guidance doesn’t help sentiment ) after hours Thursday , which betrays the extent of its efforts to grow beyond its basic videoconferencing product.
Medtronic ( NYSE: MDT) is the big name to report earnings before the market opens, while INTUIT )(NASDAQ: INTU) made headlines after the bell. Chinese e-commerce company JD.com (NASDAQ: JD.com 9902) will also report.
4. Musk subpoenas documents from Dorsey to support Twitter fight
Elon Musk subpoenas documents from Twitter (NYSE: TWTR) founder and former CEO Jack Dorsey aims to bolster his arguments about social media company spam and bot users as he tries to resist Twitter forcing him to buy it attempt.
Twitter sued Musk for failing to make a binding takeover offer earlier in the summer, while Musk countersued, claiming Twitter withheld information about spam accounts.
Before that, Musk had counted on support from Dorsey and others to help him take the company private, encouraged by Dorsey’s supportive (but non-binding) comments on social media. However, Dorsey sold his stake in the company to Musk for about $1 billion.
The five-day trial will begin in October 17th.
5. Oil prices rise as Saudi minister threatens output cuts; gas continues its LNG-driven surge
in Saudi Crude prices rebounded after Arab oil ministers tried to push markets higher by warning of possible output cuts.
In an interview with Energy Intelligence and Bloomberg, Prince Abdulaziz bin Salman said that futures prices have fallen 30% Compared to peaks earlier in the summer, failing to reflect the tightness in the spot market, OPEC+ producers may need to cut supply to end this “disconnect”. Weekly inventory data from the American Petroleum Institute will be 25 ) Post : 47 ET as usual.
By : 20 ET, U.S. crude futures rose 1.8% to $92. barrels while Brent futures rose 1.5% to $47. 97 A bucket. Natural gas futures 9902 continue to push new 25 year highs as demand from Europe keeps the Atlantic LNG market extremely tight ahead of the coming winter.