Financial news roundup Monday, 2 October 2023

The United Kingdom’s manufacturing sector has shown a slight improvement in September, with the S&P Global/CIPS Manufacturing PMI coming in at 44.3, slightly above expectations of 44.2. This indicates a marginal recovery in the manufacturing sector, which has been grappling with the impacts of the pandemic and Brexit.

In currency news, the Euro (EUR) is making a comeback against the US Dollar (USD), aiming to reach 1.0600 ahead of crucial US data. The EUR/USD pair has successfully reclaimed the 1.0590 level and is now advancing for the third consecutive session. Meanwhile, the USD/JPY currency pair is expected to undergo a period of consolidation in the coming weeks, trading within the range of 148.50 to 150.50, according to market strategists.

Asian stocks have posted modest gains on Monday, with investors focusing on economic data from China and Japan while awaiting the US PMI. Despite the holidays in China and India, Japan’s Nikkei has managed to trade higher in Asian markets, indicating positive sentiment and confidence among investors in the Japanese market.

In commodities, the price of gold (XAU/USD) continues to decline, entering negative territory for the sixth consecutive day during early Asian trading hours on Monday. Currently trading below $1,950, this downward trend is expected to persist as investors await the release of the US Purchasing Managers’ Index (PMI) and a speech by Federal Reserve Chair Jerome Powell.

In the UK, water bills may rise for customers if Ofwat approves new plans put forth by water companies. The companies are seeking to invest a staggering £96 billion in an ambitious project to improve the water infrastructure and services across the country.

In the field of research and development, the National Science Foundation (NSF) has joined forces with the Institute for Progress to explore innovative methods of funding. This collaboration aims to revolutionize the way research and innovation are supported and financed.

Retailers in the European Union (EU) are expressing concerns over Brussels’ plan to revamp payment rules. The proposed changes, aimed at supporting small and medium-sized enterprises (SMEs), have sparked apprehension within the industry, with warnings of impending price hikes and a surge in imports from China.

On Wall Street, investors are feeling increasingly cautious as a series of challenges, such as surging oil prices and labor strikes, have cast a shadow over the market. The possibility of interest rates remaining high for a longer duration than initially anticipated has added to the sense of unease among investors.

Finally, the European Monetary Union’s Harmonized Index of Consumer Prices (MoM) for September has shown a slight decrease compared to the previous month. The index recorded a growth rate of 0.3% in September, down from the previous month’s 0.5%.

This article was generated by AI so there may be some errors.

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