A good Run for August

What is seen as a typically weak season ends well for the equity market. However, the stocks generally ended lower on Tuesday due to signs of weaker growth in China and some level of inflation seen in Europe.

The focus continues to be on economic data, given that the manufacturing and non-manufacturing data from China had fallen more than anticipated. On a side note, the S&P 500 had a great year as it registered the seventh straight monthly gain.

Best performer includes those of value-oriented sectors that are well received in the maturity of life cycles and have some level of sensitivity towards the cyclical demand.

Could September be a Curse yet again?

Stock markets usually have a rough September. Yet, many analysts believe this year could be different. Based on historical data since 1928, when the S&P 500 had risen by more than 13% in the first half of the year, the index tends to have a median return of 1.4% in September.

Whether this remains true, we shall observe.

PayPal: A New Driver in Trading

The company is working on the development of its app to allow for stock trading. This will essentially put pressure on a trading platform like Robinhood Markets. Robinhood shares have fallen drastically after the news. Other lousy information continued to pile up, such as the desire by the SEC Chairman to ban payment for order flow, a source of lucrative income for the company.

Paypal news should not come as a surprise given that in the early year, they had a hint on exploring stock trading in their platform. This is likely to happen in 2022 as the company explores ways to engage consumers’ wallets better and attract more funds into their ecosystem.

What’s on the Menu Today?

At 8.15 pm, we will receive the ADP Nonfarm Employment, which we expect a jump to 613K from 330K in the prior period.

When the clock hit 10 pm, ISM Manufacturing PMI is expected to moderate to 58.6 from 59.5 in the prior period.

This week’s attention and focus are on Friday’s job data, and we expect volatility to remain grounded.

It is 1 September, Wednesday, 8 am in Singapore and 8 pm in New York. Pika World wishes all friends a splendid start to the first day of the trading month.