European Economics Preview: Germany Factory Orders Data Due

Factory orders from Germany and quarterly national accounts from Switzerland are due on Thursday, headlining a light day for the European economic news.

At 1.45 am ET, the State Secretariat for Economic Affairs is set to release Swiss GDP data. The economy is forecast to grow 0.2 percent sequentially in the second quarter after expanding 0.6 percent in the first quarter.

At 2.00 am ET, Destatis is scheduled to publish Germany’s factory orders data for July. Orders are forecast to shrink 1.5 percent on month, in contrast to June’s 2.5 percent increase.

At 3.00 am ET, retail sales data is due from the Czech Republic. Economists expect sales to climb 5.9 percent on year in July, following a 0.2 percent rise in June.

Half an hour later, Sweden’s central bank is set to announce its rate decision. The bank is forecast to leave its key rate unchanged at -0.25 percent.

In the meantime, IHS Markit is scheduled to issue Germany’s construction PMI data for August.

At 5.00 am ET, Greece unemployment data is due for June.

U.S. factory orders rise for second straight month in July

Factory orders rose 1.4% in July, for the second straight monthly gain, the Commerce Department said Thursday. The increase was led by volatile civilian aircraft orders, primarily Boeing BA, +1.82% Economists polled by MarketWatch had expected a 1.2% increase. Orders in the prior month were revised to a 0.5% gain from the prior estimate of 0.6%. Durable goods orders rose 2% in July, revised down slightly from last week’s initial estimate of a 2.1% gain. Orders for nondurable goods rose 0.8%. Core factory orders, excluding defense goods and civilian aircraft, rose a revised 0.2% in July, down from the initial estimate of a 0.4% gain. Shipments of core goods fell 0.6% in July.

U.S. Factory Orders Jump More Than Expected In July

New orders for U.S. manufactured goods jumped more than expected in the month of July, the Commerce Department revealed in a report released on Thursday.

The report said factory orders surged up by 1.4 percent in July after climbing by a downwardly revised 0.5 percent in June.

Economists had expected factory orders to jump by 1.0 percent compared to the 0.6 percent increase originally reported for the previous month.

The bigger than expected increase in factory orders came as orders for durable goods spiked by 2.0 percent, led by orders for transportation equipment. Orders for non-durable goods also climbed by 0.8 percent.

The Commerce Department said inventories of manufactured goods also rose by 0.2 percent in July after inching up by 0.1 percent.

Meanwhile, the report said shipments of manufactured goods edged down by 0.2 percent in July following two consecutive monthly increases.

Even though inventories rose and shipments fell, the inventories-to-shipments ratio was unchanged from the previous month at 1.38.

Stock market’s surge shows no sign of panic buying behavior

While the Dow Jones Industrial Average DJIA, +1.66% surged toward its best day in three months, volume-weighted market breadth readings suggest investors are buying at a cool, calm and collected pace. The Arms Index, which tends to fall below 1.000 during broad market rallies, as volume in advancing stocks increases at a faster pace than the number of stocks that are rising, is little changed at 0.963 for the NYSE and up slightly at 1.151 on the Nasdaq. Meanwhile, the Dow was up 442 points, or 1.7%, while the Nasdaq Composite COMP, +1.72% shot up 1.9%. Many technicians believe the Arms has to fall to 0.500 or below to suggesting panic-like behavior. The number of advancing stocks outnumbered decliners by a 3.16-to-1 margin on the NYSE and by a 4.02-to-1 score on the Nasdaq, while volume in advancing stocks outnumbered down volume by 3.28 to 1 on the Big Board and by 3.49 to 1 on the Nasdaq.

Iran to boost uranium enrichment

Al Jazeera granted rare access to only nuclear research facility in Iran where much-disputed 20 percent enriched uranium is being used.

Iran’s President Hassan Rouhani says increased uranium enrichment will start “immediately”.

Al Jazeera has been granted rare access to the only nuclear research facility in Iran where the much-disputed 20 percent enriched uranium is being used.

Al Jazeera’s Dorsa Jabbari has this exclusive report from the Tehran Nuclear Research Reactor.

U.S. Treasury to sell $87 bln in 13- and 16-week bills

NEW YORK, Sept 5 (Reuters) – For details of the U.S. Treasury’s auctions of 13-week and 26-week bills next week, see:

13-week bills

here

26-week bills

here (Washington economics newsroom)

U.S. Treasury to sell $28 bln in 1-year bills

NEW YORK, Sept 5 (Reuters) – For details of the U.S. Treasury’s auction of 1-year bills on Thursday, see:

1-year bills

here

U.S. Treasury to reopen $16 bln in 30-year bonds

NEW YORK, Sept 5 (Reuters) – For details of the U.S. Treasury’s reopening of 30-year bonds, see:

30-year bonds: here (Washington economics newsroom)

UK health service not on the table in US trade talks: Johnson

Prime Minister Boris Johnson told visiting U.S. Vice President Mike Pence on Thursday that Britain's National Health Service would not be included in negotiations with the United States for a trade deal once Britain has left the European Union.

"The National Health Service is not on the table as far as negotiations go," Johnson said as he received Pence at his Downing Street office.

Johnson also joked: "We're not too keen on your chlorinated chicken."

Pence told Johnson that the United States supported Britain's planned departure from the EU and was ready, willing and able to negotiate a free trade agreement.