Global Market Quick Take: Europe – September 1, 2023 Global Market Quick Take: Europe – September 1, 2023 Global Market Quick Take: Europe – September 1, 2023

Global Market Quick Take: Europe – September 1, 2023

Macro 3 minutes to read
Saxo Strategy Team

Summary:  US and European equity futures trade higher along with Asian stocks ahead of Friday’s US job report after China provided additional support to its ailing economy. US Treasury yields extended their retreat from a 2007 high while the dollar trades higher, especially against the euro.

The Saxo Quick Take is a short, distilled opinion on financial markets with references to key news and events.

Equities: Cyclical sectors continue to outperform defensive sectors suggesting investors are not worried about a slowdown in the economy, and the S&P 500 futures still sit firmly above the 4,500 level. Hang Seng futures are bouncing a bit today after two down sessions. Samsung shares are up more than 6% as the company is the company will join as supplier of advanced memory chips to Nvidia.

FX: Month-end flows and EUR weakness driven by dovish ECB comments has driven the dollar higher with EURUSD hitting a 1.0835 low overnight. GBPUSD also sold-off but found support at 1.2650 with BOE chief economist Pill saying further hikes might not be necessary. PBoC’s announcement to cut RRR saw USDCNH break below 7.25 from 7.2750, while NZD and AUD rallied. USDJPY holds above 145 with focus on NFP jobs data

Commodities: Crude oil is heading for its best week since April as Russia plans to extend export cuts while Saudi Arabia is expected to roll over its 1m b/d cut to October. Demand worries also easing in China as the government rolls out additional measures to support the economy. Gold on watch ahead of US jobs report with focus on resistance at $1948. Copper breaks higher on China support with focus on 3.8725 next.

Fixed-income: The 10-year yield extended its retreat on Thursday and has now dropped 26 bps since hitting a 2007 high last month

Volatility: As the VIX continues to go down, now at 13.57, fear sentiment is going to its lows, helping risk-on sentiment, and opening the path to higher equity valuations. One such equity that got a boost yesterday was Canadian e-commerce platform Shopify, that saw an unusual high options activity, with volume up to 6 times as high as in the previous days and more than double the number of call options traded compared to put options, it clearly shows that traders are bullish on the news that Amazon's integration of "Buy with Prime" in Shopify will be good for its valuation.

Macro: China’s PBoC announced a cut to FX RRR from 6% to 4% from September 15 while the Caixin Mfg PMI surprised positively at 51 vs 49 exp and 49.2 prior. Little new information in US claims and July PCE data. Jobless claims 228k (exp 235k vs 232k prior) and core PCE +0.2% MoM, 4.2% YoY as expected. Both reaffirmed economy is cooling but not fast enough

In the news: DeepMind’s (Google’s AI unit) co-founder Suleyman is arguing that the US should use its power in semiconductors to enforce global standards on AI – full story in the FT. Broadcom guidance is weaker than expected on stiff competition and weak demand – full story on Reuters. Lululemon lifts guidance on strong growth in China – full story on CNBC.

Technical analysis: S&P 500. Rejected at resistance at 4,527. Expect set back. Support at 4,340.
Gold rejected at 1,947 resistance. Expect set back to 1,915 before uptrend resumes
US 10-y Treasury yields top and reversal pattern could correct to 4.10-4.00

Macro events: US Nonfarm Payrolls (Aug) est 170k vs 187k prior (1230 GMT)

Earnings events: No earnings today

For all macro, earnings, and dividend events check Saxo’s calendar


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (
Full disclaimer (

Saxo Bank (Schweiz) AG
The Circle 38

Contact Saxo

Select region


All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law.

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.