• Wall Street ended mixed on September 4, as the DJIA edging up by +0.09%, while the S&P 500 and Nasdaq declined by -0.16%, and -0.30%, respectively.
• Stocks rebounded Wednesday from early losses as the 10-year T-note yield hit a 2-week low, prompting short covering after US July JOLTS job openings fell more than expected. However, stocks turned mixed later, weighed down by negative corporate news.
• The 10-yr UST yield declined by -7.0 bps to 3.77%, while the 2-yr yield tumbled by -12.0 bps to 3.76%. T-notes rallied Wednesday, and yields fell as US July JOLTS job openings dropped more than expected, with further gains on the Fed Beige Book's report of declining US economic activity, a dovish signal for Fed policy.
• The US JOLTS job openings in July declined by -237,000 to 7.673 million, the lowest level in 3.5 years, indicating a softer labor market than the anticipated 8.100 million.
• The US trade deficit widened to USD78.8 billion in July from USD73.0 billion in June, marking the largest deficit in two years and posing a negative factor for 3Q24 GDP.
• The Euro Area saw producer prices decrease by -2.1% YoY in July 2024, the smallest drop since deflation began in May 2023, after a downwardly revised -3.3% fall in June. Monthly PPI rose +0.8% MoM, the highest increase since December 2022 (Eurostat).
• In Asia, The Caixin China General Services PMI fell to 51.6 in August 2024, down from 52.1 in July and below market expectations of 52.2 (S&P Global).
• Global bond yields moved lower on Wednesday: the 10-yr German bund yield slid by -5.2 bps to 2.22%, the 10-yr UK gilt yield fell by -5.5 bps to 3.93%, and the 10-yr Japanese JGB tumbled by -4.2 bps to 0.88%.
