Todays’ Market Summary
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On Wednesday, the US dollar index rose for the second day in a row.
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American stock indices rose yesterday.
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Yesterday, world prices for Brent crude oil renewed a 3-year high and a 7-year high for WTI.
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Gold quotes are rising in price today for the second day in a row despite the strengthening of the US dollar.
Top daily news
September US Labor Market Survey from Automatic Data Processing, Inc. (ADP) turned out to be much better than expected. The dollar strengthened against the euro to its maximum level in 14 months. US stocks and precious metals rose on a GOP proposal to raise the government debt limit. As expected, US oil inventories increased over the week, which triggered a correction in oil prices.
Forex news
| Currency Pair | Change |
|---|---|
| EUR USD | +0.09% |
| GBP USD | +0.07% |
| USD JPY | -0.1% |
On Wednesday, the US dollar index rose for the second day in a row. It was unable to renew its maximum from September 30th. However, against the euro, the dollar strengthened to its maximum level in 14 months (EURUSD). September US Labor Market Survey from Automatic Data Processing, Inc. (ADP) turned out to be much better than expected. Now investors are waiting for the official U.S. non-farm payrolls will also be positive. It will be released on Friday. Another good news for the US dollar was the announcement by Senate Republican Mitch McConnell that the government debt limit should be raised. Today in the US unemployment data will be released for the previous week. Several ECB representatives are expected to speak in the Eurozone today, as well as the publication of Monetary Policy Meeting Accounts (minutes of the ECB meeting on monetary policy). Bitcoin is showing the most powerful growth. In 5 days, it has risen in price by 35%. The US government is currently supporting the cryptocurrency market in every possible way.
Stock Market news
| Indices | Change |
|---|---|
| Dow Jones Index | +0.3% |
| S&P 500 | +0.41% |
| Nasdaq 100 | +0.47% |
| US Dollar Index | -0.14% |
American stock indices rose yesterday. This was mainly due to the proposal of the Republican Party to increase the limit of public debt. Let us remind you that this issue must be resolved before October 18. Investors hope for the continuation of large-scale monetary stimulation of the American economy. ADP labor market data also played a positive role. Moderna shares lost almost 9%. Sweden and Denmark have suspended the use of its coronavirus vaccine for citizens under 30 due to the risk of heart complications. The Hong Kong Hang Seng Index is up nearly 3% today on news of a possible meeting between the leaders of the US and China. Futures on US stock indices also rose markedly today.
Commodity Market news
| Commodities | Change |
|---|---|
| WTI Crude | -1.91% |
| Brent Crude Oil | -1.25% |
| COPPER | +0.69% |
Yesterday, world prices for Brent crude oil renewed a 3-year high and a 7-year high for WTI. Downward correction began immediately after that. As expected, US oil inventories increased over the week. However, their growth by 2.35 million barrels far exceeded the forecast (+420 thousand barrels). For Brent, the psychological support level is now at $ 80 per barrel. Russia announced a possible increase in natural gas supplies to Europe. Because of this, its quotes have fallen by almost 15% today. Cocoa fell yesterday amid reports that its exports from Nigeria in August increased to 20.9 thousand tons. This is 7 times more than last year. Previously, the main cocoa producers in West Africa were Cote d’Ivoire, Ghana and Cameroon. Now Nigeria is likely to join them.
Gold Market News
| Metals | Change |
|---|---|
| Gold | +0.32% |
| Silver/US Dollar | +1.16% |
Gold quotes are rising in price today for the second day in a row despite the strengthening of the US dollar. They usually move out of phase as investors view precious metals as an alternative to US stocks and bonds. Gold quotes were supported by a possible increase in the US government debt limit. Investors believe that this will help keep inflation high.