S&P 500

The US market is hovering near its annual highs.

On Wednesday, major US indices changed a little: the Dow Jones Industrial Average slid by 0.14%, the NASDAQ Composite added 0.33%, while S&P 500 remained unchanged.

COVID in the world. The third wave of the coronavirus pandemic is near its highs. Yesterday, the number of new COVID-19 cases increased by 682 K globally. The leader in terms of infections is the United States, with a 184 K rise, which is almost 30% of the world's new cases. Britain is ranked third on this list. Yesterday, the country reported an increase of 36 K new coronavirus infections. The death rate is 30% lower than the highest level posted during the second wave thanks to mass vaccination campaigns.

S&P 500: 4524. Trading range: 4,500-4,540. Yesterday's macroeconomic calendar included the first part of important releases regarding the US economy. They turned out to be contradictory. On the one hand, the ADP employment report showed that US companies had created far fewer jobs than expected in August. According to it, 374,000 jobs were added last month, far short of the 600,000 expected by economists. On the other hand, economic activity in the manufacturing sector was 59.9% in August, higher than in July, while analysts predicted a noticeable decline. Today, a weekly jobs report will be released, in which it is necessary to pay attention to the dynamics of long-term unemployment as in recent weeks, the indicator has stabilized at about $2.85 million.

Tomorrow's macroeconomic calendar includes a report on business activity in the service sector. This indicator is more important than the industrial sector, since the service sector contributes about 60% to the country's gross domestic product. The official report on nonfarm payrolls will also be released on September 3.

Crude inventories in the United States fell by 7.2 million barrels in the week to August 27, far too drastically than expected. Nevertheless, gasoline stocks increased by 1.3 million barrels. A decline in oil inventories indicates that US gasoline demand is strong despite the coronavirus pandemic.

The CEO of Amazon, the largest e-commerce and delivery company in the United States and the world, as well as one of the leaders in the technology sector, said the company would hire another 55,000 employees.

USDX: 92.40. Trading range: 92.00–92.70. Yesterday, the US dollar index declined amid a new rally in the EUR/USD pair. The euro advanced after the news on high inflation in the EU. The inflation rate in the region rose to its highest level in 10 years. Against this background, German government bond yields increased. This, in turn, boosted demand for the euro, exerting pressure on the greenback.

USD/CAD: 1.2605. Trading range: 1.2550-1.2650. As long as oil prices are trading at high levels (in particular, Brent is above $71), the pair is likely to edge lower.

Conclusion. Market participants are awaiting the second part of important statistics from the United States.