Service sector growth boosts the probability of a +75 bps increase in the FFR. The Nasdaq technology index consistently moved in the Red Zone yesterday, closing lower for the seventh day in a row. US services sector, ISM Services Index Aug. rose to 56.9 points (Vs. Jul. 56.7 points), making investors see a 74% probability of a +75Bps Fed rate hike next September based on CME FedWatch data. Apart from focusing on Powell’s speech on Thursday, investors are also anticipating the European Central Bank’s monetary policy on the same day. Based on a Bloomberg survey, the ECB Main Refinancing Rate Sept. up +75Bps to 1.250% (Vs. Aug. 0.500%).
Coal’s new record pushes the energy sector up 3%. JCI closed above the psychological level of 7,200 points for two consecutive days, amid the pros and cons of the Government’s decision to increase the price of subsidized fuel by more than 30%. Meanwhile, the European continent’s energy crisis caused coal prices to hit a new record in the ICE Newcastle market, which closed at USD461.07/Ton or up nearly 6% after Gazprom stopped indefinitely supplying natural gas to the Eurozone last Friday. NHKSI Research projects that JCI will move Consolidating / Sideways with Support: 7,200 / 7,180-7,150 / 7,080 and Resistance: 7,260-7,288 / 7,300 / 7,350.
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