US stock markets finished August on a downbeat note dropping into negative territory for the month on the last day. The energy and materials sectors led the declines dragged by falling commodity prices. Economic news on the day was mixed with US ADP payrolls coming in slightly better than expected but offset by disappointing Chicago PMI which left Fed speculation at a standstill. Canadian GDP for June bounced back better than expected from the May wildfire distortions but Canadian stocks and CAD were impacted by outside factors. The biggest action on the day was in crude oil which saw WTI plunge over 3% and take out $45.00 after a 2.2 mmbbl higher than expected increase in DOE inventories confirmed that US stockpiles have started to rise again, a fundamental headwind on the price. This breakdown dragged on energy stocks and CAD as well. For the next 24 hours, traders appear likely to focus on Manufacturing PMI reports the first indication of global economic trends for the month of August. In particular, Japan’s report may attract attention with JPY weakening on speculation the Bank of Japan may do something to increase stimulus at an upcoming meeting. The UK report may also attract significant attention with traders looking for signs of how much if any impact the Brexit decision has had on the UK economy. GBP has recovering on recognition the UK so far has held up a lot better than the Chorus of Brexit Doom had thought it would. The US PMI report could drive some FOMC speculation but only if it’s a big surprise with Friday’s nonfarm payrolls report still likely to capture more attention. Corporate News There have been no major corporate announcements after the US close today. Economic News Significant announcements released overnight include: Canada June GDP over month 0.6% vs street 0.4% and previous (0.6%) Canada June GDP over year 1.1% vs street 1.0% Canada Q2 GDP (1.6%) vs street (1.5%) vs previous 2.4% US ADP Payrolls 177K vs street 179K US ADP payrolls previous revised up to 194K from 179K US Chicago PMI 51.5 vs street 54.0 US pending home sales (2.2%) vs street 2.2% US DOE crude oil inventories 2.2 mmbbls vs street 1.3 mmbbls US DOE gasoline inventories (0.7 mmbbls) vs street (1.0 mmbbls) UK Nationwide house prices 5.6% vs street 4.8% Germany retail sales (1.5%) vs street 0.3% Germany unemployment change (7K) vs street (4K) Germany unemployment rate 6.1% as expected Upcoming significant economic announcements include: (Note: 11:30 am in Sydney/Melbourne is currently 1:30 pm in Auckland, 4:30 pm in Vancouver, 7:30 pm in Toronto/Montréal, 12:30 am in London and 8:30 am in Singapore) 9:50 am AEST Japan Q2 capital spending street 5.5% vs previous 4.2% 11:30 am AEST Australia Q2 private capex street (4.0%) vs previous (5.2%) 11:30 am AEST Australia retail sales street 0.3% 4:30 pm AEST Australia commodity index previous (2.0%) 9:00 am BST Norway retail sales street 0.3% 8:30 am EDT US jobless claims street 265K 10:00 am EDT US construction spending street 0.5% vs previous (0.6%) 10:30 am EDT US natural gas street 41 BCF Manufacturing PMI reports: 9:30 am AEST Australia previous 56.4 10:30 am AEST Japan Nikkei previous 49.6 3:00 pm AEST India Nikkei previous 51.8 11:00 am AEST China official street 49.8 vs previous 49.9 11:00 am AEST China official non-man previous 53.9 11:45 am AEST China Caixin street 50.1 9:30 am BST UK street 49.0 vs previous 48.2 8:55 am BST Germany street 53.6 8:50 am BST France street 48.5 8:15 am BST Spain street 50.9 8:45 am BST Italy street 51.2 7:30 am BST Sweden street 54.0 8:00 am BST Norway street 54.7 8:00 am BST Poland street 50.6 9:00 am BST Greece previous 48.7 9:30 am EDT Canada previous 51.9 9:45 am EDT US Markit street 52.1 10:00 am EDT US ISM street 52.0 vs previous 52.6 10:00 am EDT US ISM new orders previous 56.9 CMC Markets is an execution only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.