September Starts With a Selloff For Stocks and Commodities

September, historically the weakest and most volatile month of the year for stocks, is off to a soft start. Returning form the long weekend, US index futures are down 0.50%-0.6%. Over in Europe, the Dax is down 0.3% and the FTSE is down 0.5%.

Commodities are under pressure this morning with Copper plunging 2.6% and US Crude Oil falling 1.0%. Manufacturing PMI reports from around the world were mixed relative to expectations but the broad majority were below 50 in contraction territory, adding to concerns the global economy may be slowing significantly, which could have a negative impact on demand for resources.  Canadian Manufacturing PMI (previous 47.8) is due at 9:30 am EDT, followed by US ISM Manufacturing PMI (street 47.5) and US Construction Spending (street 0.0%), at 10:00 am EDT.

Currency action is mixed today. The Japanese Yen continues to recover, Gold is holding steady against a generally strengthening US Dollar suggesting some capital continues to move to defensive positioning. The Canadian Dollar is down 0.4% with investors widely expecting the Bank of Canada to deliver a 0.25% interest rate cut for the third meeting in a row tomorrow.

The rest of the week is also busy for economic news, headlined by US ADP payrolls and US Service PMI numbers on Thursday, plus US Nonfarm Payrolls and Canada jobs on Friday.  

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