Weekly Market Recap: Markets Navigate Mixed Signals

In the past week, global financial markets were influenced by a mix of economic data and corporate earnings reports. China’s manufacturing PMI reached a five-month high, indicating improved industrial activity. In contrast, US manufacturing continued to contract, but strong employment data showed nonfarm payrolls increasing by 254,000. Commodities experienced significant movements, with crude oil and Brent oil both gaining over 8%. Major stock indices posted modest gains, while Nike reported earnings that beat EPS estimates but saw a decline in revenue, resulting in an 8.04% drop in its share price for the week.

Monday, September 30

04:30 am – China: Manufacturing PMI (CNY)

According to official data on Monday, the purchasing managers’ index (PMI) for China’s manufacturing sector came in at 49.8 in September, up from 49.1 in August. The reading marked the highest notch in the recent five months and ended a two-month decline, according to the National Bureau of Statistics (NBS). NBS statistician Zhao Qinghe said the improving PMI suggested that manufacturing activities picked up pace this month with better performance.

The USDJPY rose by 0.09% compared to the previous day.

17:00 – USA: ISM Manufacturing PMI (USD)

In September 2024, the Manufacturing PMI was 47.2%, indicating continued contraction in the sector. New orders, production, employment, exports, and imports all contracted. Supplier deliveries slowed, raw materials inventories decreased, and prices fell. Overall, demand remained weak, and output declined.

The EURUSD exchange rate declined by 0.6% compared to the previous day.

15:15 – USA: ADP Nonfarm Employment Change (USD)

In September 2024, US private employers added 143,000 jobs, marking a rebound after a five-month slowdown. Job gains were widespread, with manufacturing adding jobs for the first time since April. The information sector was the only one to lose jobs. Despite stronger hiring, pay growth for job changers slowed to 1.9%, matching a low last seen in January.

The USDJPY price increased by 2%.

09:30 am – Switzerland: CPI m/m (CHF)

In September 2024, Switzerland’s CPI fell by 0.3% from the previous month, with inflation at 0.8% year-over-year. The drop was mainly due to lower prices for travel, accommodation, and fuel, while clothing and some food items saw price increases.

The USDCHF pair appreciated by 0.32% on the day, reflecting continued strength in the US dollar against the Swiss franc.

For the week ending September 21, 2024, seasonally adjusted initial unemployment claims fell by 4,000 to 218,000, with the 4-week moving average down to 224,750. The insured unemployment rate remained steady at 1.2%, with 1.834 million people claiming benefits. Unadjusted claims dropped by 5,957 to 180,878. Texas, New York, and California saw the largest increases in claims, while Massachusetts had the biggest decrease.

The EURUSD exchange rate edged lower by 0.12%, reflecting a modest depreciation of the euro against the US dollar.

In September 2024, the Services PMI rose to 54.9%, indicating continued expansion in the services sector. Business Activity (59.9%) and New Orders (59.4%) showed strong growth, while the Employment Index contracted to 48.1%. Supplier deliveries slowed, reflecting increased demand. Despite concerns over political uncertainty and supply chain issues, the overall outlook remains positive, with key industries such as real estate, finance, and healthcare driving growth.

The US Dollar Index (DXY) strengthened by 0.33% compared to the previous trading session, reflecting a modest uptick in demand for the greenback.

15:30 – USA: Nonfarm Employment Change (USD)

In September, nonfarm payrolls rose by 254,000, with the unemployment rate steady at 4.1%. Key job gains occurred in food services, health care, government, and construction. Average hourly earnings increased by 0.4%, up 4.0% over the year. Revisions to July and August added 72,000 more jobs, and Hurricane Francine had no significant effect on the data.

The EURUSD exchange rate declined by 0.5%, reflecting a weakening euro against the dollar.

Crude Oil

• Crude Oil had an 8.2% weekly gain.

Brent Oil

• Brent rose by 8.2% compared to the previous week

Gold

• Gold (XAUUSD) closed the week with a marginal decline of 0.19%

Silver

• XAGUSD posted a weekly gain of 1.69%, reflecting strengthened momentum in silver prices

• S&P 500 increased by 0.25%
• DJIA was up by 0.11%
• NASDAQ 100 increased by 0.12%

• Chanson International Holding (CHSN) 387.17%
• Beneficient (BENF) 58.82%
• Forward Industries, Inc. (FORD) 52.41%

• Fangdd Network Group Ltd. (DUO) -32.89%
• Xinyuan Real Estate Co., Ltd. (XIN) -27.23%
• Upexi, Inc. (UPXI) -26.88%

Tuesday, October 1: NKE (NIKE, Inc.)

Nike (NKE) reported Q3 CY2024 revenue of $11.59 billion, down 10.4% year-over-year but in line with expectations. EPS beat estimates at $0.70, 34.9% higher than forecasted. Gross margin improved to 45.4%, while constant currency revenue fell 9%, impacted by foreign exchange rates. Nike’s free cash flow margin averaged 12.7% over the last two years, highlighting solid cash profitability.

Nike shares experienced a notable decline of 8.04% over the past week, reflecting a period of increased selling pressure.

In conclusion, global markets were shaped by a mix of economic indicators and reports this week. While China’s manufacturing PMI showed improvement, US manufacturing continued to contract, offset by strong nonfarm payroll gains. Commodities saw significant movements, with oil prices surging over 8%, while stock indices posted modest gains. Nike’s earnings beat expectations, but the stock dropped 8.04%, reflecting broader selling pressure.