 Okay, very good morning folks. It's Tuesday 24th of August. Anthony here. Hope you're doing well. And what a day yesterday was and An actuality as we come into the European open I can see the Nasdaq and S&P 500 futures just breaking out of or attempting to on the upside What has been an incredibly tight range in the overnight Asia pack session Following the big leap Obviously index futures that we saw from the cash open yesterday kind of a dual fold combination of that Market service PMI data coming out quite a bit lower than expected and also the FDA granting full approval of the Pfizer-BioNTech vaccine, which I'll talk about why that's important potentially going forward but Nasdaq future here just pushing up again Breaking out of the top side of that range, which really cap the closing wall street in the futures market and the Asia pack session it's definitely worse keeping an eye on that this morning and Just having a look at the S&P. It's very similar So Asian equities actually traded higher overnight followed on from the higher Um, kind of positive handover from wall street where the Nasdaq was the clear out performer up 1.5 percent The S&P and Dow were up 1.9 and 1.6 percent each respectively And so they're just breaking out of this Asian pack high as we're just going to the European high in the S&P So just keeping an eye on 85 and three quarters, which of course is the all-time record high that we saw yesterday So a bit of a recap then on why equities performed so positively in that environment And we have seen the dollar reverse course and as such then yesterday good gain seen top left in the euro dollar and cable major pairs Gold also saw a breakout to the upside and if you were just looking on the daily chart in gold We're back through quite a key inflection point as you can see here from these three rectangles of price at around 1791 in futures So upside now perhaps some clear air until we get further up towards 1813 and a half on the daily perspective But gold again similar to equities holding on to a lot of that move as the dollar remains a little bit weaker Once again this morning that I'm definitely holding on to that downward trend we saw yesterday So also oil managing to claw back its losses as well So a decent recovery here from some of the sell-off that we were seeing towards last week And we're trading back to a 66 handle having traded a 61 handle Just a day or so ago So pretty good recovery seen around markets But why exactly was this happening and why was weak data good for general sentiment and equities in particular And what is it about the FDA approval because you know, you might think on the surface Well, what does it matter the FDA approving the Pfizer-BioNTech vaccine because The Pfizer vaccine has been distributed for a long time. It's being administered for several months now I myself are receiving my second jab of Pfizer In a few hours time later on today But the idea here I thought was quite interesting There was a Bloomberg article talking about this And actually if you look at the trajectory of vaccination rates in the u.s They started very quickly in a similar vein to the uk However, that really has plateaued quite a lot and we've seen most mainland european countries Which were very slow in the pickup or the rollout of the vaccine strategy have now superseded the states As is the uk canada and other countries as well And part of the big thing here has been vaccine hesitancy particularly around that of the black and hispanic communities in the u.s And there was a very interesting Study that came out from the Kaiser family foundation And they give impartial kind of scientific or research, I should say and ask polling and things like that particularly on the healthcare issues in the u.s And they had a survey from june Shared with bloomberg news that found that among unvaccinated respondents 46 of hispanic and 41 of black people said the fda approval would make them more likely to get a kovid-19 vaccine Compared to 25 of white people in that survey So a much more bigger proportional impact that the seal of approval the stamping of the fda would have on the potential for them to Take up the vaccine. And so this definitely has been a kind of if you splice down the demographics of those getting vaccinated overlaying then political Disposition in terms of area geographically in the u.s. Where you sit and the u.s. Definitely needs to find ways of which To to get that trajectory back on the ascent again And this comes in the context of course with the seven-day average death rate in the u.s. Currently toting or topping 1000 for two straight days And that's the first time that that's happened since march and you remember This is coming off then the peak that we saw through new year of kovid in the u.s. And other pockets around the world And the other thing of course that we had yesterday was the market services PMI the flash number for for august And that came in at 55.2 And we were expecting just short of 60 at 59.5. This was a deceleration in fact from 59.9 So considerable slowdown in that figure And growing a growth slowing to an eight month low actually per that data In august against a backdrop of material shortages a lack of labor and an upswing in corona virus infections So remember a lot of this labor issue has been the not a Bifunction of job availability but getting people to do these jobs But if you think about a lot of those jobs in leisure and hospitality that type of industry A lot of that is concentrated in the hispanic and black communities But if they're the ones who are not willing or have had vaccine hesitancy They're in lies a bit of a problem And hence why if they feel more confident now with FDA approval to take that vaccine It actually could make a difference. So, you know something to just just think about Obviously with the data side of things on the services PMI and another powerful catalyst for yesterday's response to market Particularly equities to surge up to record highs is with such a big miss on that data note the market really is showing signs of struggling To get back to a degree of normality because of the material shortages chip shortages We know for auto manufacturing still being very problematic And it's lack of labor and labor being one of the key components for the fed's policy decision-making process alongside of course inflation But the labor market particularly an emphasis of the administration, of course to get people back into work and All of this then has an impact on the perceived timing of tapering not that tapering is Going to be halted in its entirety But the more hawkish calls for an announcement from From jackson hall from drone pow to come on friday The formalization in september and the commencement in october which would be more of the kind of bullard hawkish disposition But perhaps then much more measured in approach And following the idea that they still need to see some of this data come through and show you a bit more consistency and robustness Particularly on the labor side before they can make that definitive call And perhaps now we're looking more towards the back end of q4 rather than the front end of q4 for the actual commencement of tapering and so That taper thing is at the center of investors attention particularly in the context of this week in jackson hall It is what is going to saturate a lot of the markets Kind of thinking and so yesterday definitely saw a response to that on the back of particularly that weak data as well Otherwise a quick look elsewhere and having a look at the us budget plan I think there's no surprises here really at all The us budget plan unsurprisingly the democrats who had voted to pass The three and a half trillion dollar budget plan last night got delayed that vote got cancelled Because they failed to overcome internal party divisions So a bit of context here centrist democrats want the house to move far at first On another biden priority, which is that one trillion dollar infrastructure bill Which has already of course won approval by republicans and democrats in the senate Um democrats hold a narrow 220 to 212 majority in the house and republicans have said they would not support the budget plan The setback of course comes As you've probably been seeing lots of conversations with heads of states at the moment about dealing with the withdrawal from afghanistan and by biden has been coming after Under some sharp criticism for how messy that exit from afghanistan has been after that 20 year long war On that point biden is expected to decide within the next 24 hours on whether to extend the august 31st Withdrawal deadline with afghanistan and to provide pentagon time to prepare Although some advisers oppose an extension due to security reasons Biden's going to be speaking later on london time It's going to be around 5 p.m. So around midday new york time when we're looking for an update on that afghan withdrawal deadline Otherwise as far as the calendar is concerned, it's pretty quiet today But before I do get to that Just wanted to give a shout out to our team who run our amplify me instagram account Really starting to up the ante with some of the content here Definitely a lot more short form than I would cover on youtube and I know Everyone's on instagram. Um, so we've just started doing some market related reels from myself And so lots of those coming out on a daily basis As well as lots of other interesting polls and things like that. So feel free to if you're on instagram if you want your little kind of key market nuggets on a daily basis just search for amplify me one word On instagram and and feel free to join that community Be great to have you on board and engage and and drop us a comment on there Otherwise, yeah for the calendar for today It's pretty quiet this morning is is really not a lot going on at all until this afternoon When we look out for us new home sales and then we're looking out for A couple of other things on the fixed income side supply coming out of germany uk and a two-year note 60 billion dollar Auction in the u.s at 6 p.m. London time, but that is it really so as far as this morning is concerned In summary, we've kind of held on to a proportion of the moves from yesterday The dollar still remaining a touch weaker this morning. So worth keeping on gold On the upside for the top end of that late u.s. Asia pack range kind of a similar setup for the nasdaq and s&p futures And yeah, that is it from me. Have a good day. Any questions feel free to drop me a comment and i'll catch you tomorrow. Thanks very much