During the trading on Wednesday, October 2, 2019, the financial markets will pay attention to the release of economic calendar data, which usually results in changes in price movements - the economic calendar is a key tool for the fundamental analysis of news to predict the performance of the markets. Therefore, care must be taken until the actual results of those data are announced to take the right trading decision. The economic news today are:
ADP survey to determine the change in US non-farm employment: In the United States, private companies hired 195 thousand workers in August, more than analysts' expectations of 149 thousand after the previous month's reading was revised to 142 thousand. The services sector added 184,000 jobs, driven by education and health; entertainment and hospitality. Trade, transport and utilities; professional and commercial services and financial activities. The information sector lost 6,000 jobs. The commodity sector hired 11,000 workers mainly in manufacturing and construction. In the natural resources and mining sector, employment declined by the year 2000.
The outlook for September 2019 is 140,000 new jobs.
US crude oil inventories: In the United States, crude oil inventories rose by 2.412 million barrels during the week ended September 20 after an increase of 1.058 million barrels in the previous period. Analysts had expected inventories to fall by 0.249 million barrels. Gasoline inventories rose 0.519 million barrels after an increase of 0.781 million barrels the previous week. Analysts had expected gasoline stocks to rise 0.296 million barrels.
On the latest economic data: Japan's sales tax was approved to increase to 10% from 8% as of Tuesday, amid fears that these long-delayed measures could hinder the fragile growth path of the world's third largest economy. Adequate measures were taken to mitigate the effects of the rise after previous tax increases - an increase of two points to 5% in 1997 and another to 8% in 2014 - which led to the recession, officials said.
The Reserve Bank of Australia cut its key interest rates for the third time this year and noted further easing to support employment and income growth. The Reserve Bank of Australia's board of governors, governed by Philip Lowe on Tuesday, decided to cut interest rates by 25 basis points to a record low of 0.75 per cent. The outcome of the meeting was in line with expectations. The bank earlier cut interest rates in June and July. The rate cut in July was the first since mid-2012.
Inflation in the Eurozone eased in September and is still far from the ECB's target, which supports the recent ECB decisions, led by Mario Draghi, to pass the latest stimulus plans. The European statistics agency Eurostat announced on Tuesday that annual inflation fell to 0.9% in September from 1.0% in August.
Lower inflation is a strong signal of economic weakness and has been a concern for officials at the European Central Bank, which aims to have the inflation rate just below 2%. The central bank, which sets monetary policy for Euro countries, decided on September 12 to launch a package of measures aimed at increasing inflation and supporting weak growth. Those measures include cutting the key interest rate to - 0.5% from 0.4% and starting the purchase of 20 billion euros ($ 22 billion) per month of government and corporate bonds, a move that injects more money into the economy. It aims to make credit cheaper for businesses and stimulate economic activity as inflation increases.