Todays’ Market Summary
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On Tuesday, the US dollar index rose for the third day in a row and hit a new high since November last year.
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Yesterday, the American stock market saw a decline in quotations.
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Today world oil prices are falling for the second day in a row awaiting the release of official data on inventories.
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Gold quotes fell slightly yesterday on the back of a strengthening US dollar and rising U.S.
Top daily news
Investors hope that the U.S. The Federal Reserve will nevertheless begin to reduce the monthly volume of US government and mortgage bond buybacks, which now stands at $ 120 billion. The funds for this program are now coming from the emission of money, which is an important factor in the constant increase in inflation in the United States. On Tuesday, the US dollar index rose for the third day in a row and hit a new high since November last year. At the same time, a decline in quotations was observed on the American stock market. The daily fall in the S&P 500 was the highest since May 2021, and the Nasdaq since March. Yesterday, WTI quotes renewed a 3-year high, but then began to actively correct downward against the background of an unexpected reduction in US inventories.
Forex news
| Currency Pair | Change |
|---|---|
| EUR USD | -0.15% |
| GBP USD | -0.1% |
| USD JPY | -0.16% |
| AUD USD | +0.08% |
On Tuesday, the US dollar index rose for the third day in a row and hit a new high since November last year. Investors hope that the U.S. The Federal Reserve will nevertheless begin to reduce the monthly volume of US government and mortgage bond buybacks, which now stands at $ 120 billion. The funds for this program are now coming from the emission of money, which is an important factor in the constant increase in inflation in the United States. Today, the European Central Bank (ECB) forum will take place, at which the heads of Fed (Jerome Powell), Bank of Japan, Bank of England, ECB itself and other officials will speak. The Japanese yen weakened against the US dollar to an 18-month low following the publication of the BoJ Monetary Policy Meeting Minutes. Investors fear that Bank of Japan will initiate additional easing of monetary policy amid continuing deflation. The British pound fell to its lowest level since January this year amid the energy crisis in Britain. The US dollar is correcting slightly down this morning. U.S. Treasury Secretary Janet Yellen expects US inflation to slow to 4% at the end of this year. This is still 2 times higher than the Fed’s target of 2%. In August, the growth of consumer prices in the United States amounted to 5.3%.
Stock Market news
| Indices | Change |
|---|---|
| ow Jones Index | -1.63% |
| S&P 500 | -2.04% |
| Nasdaq 100 | -2.83% |
| US Dollar Index | +0.06% |
Yesterday, the American stock market saw a decline in quotations. This was facilitated by rising yields on the 10-year U.S. Treasury up to 1.56% per annum, which is the maximum since June this year. Stocks and bonds often “compete” for investor funds. The daily fall in the S&P 500 was the highest since May 2021, and the Nasdaq since March. Additional negativity was the continued spread of the coronavirus, disagreements between Democrats and Republicans over an increase in the government debt limit for next year and weak economic data. Now the US national debt limit is $ 28.4 trillion. This is much more than the US GDP in 2020, which was $ 20.6 trillion. Potentially, a large national debt carries the risk of default. The CB Consumer Confidence indicator fell for the third time in a row in September (to its lowest since February) and was worse than expected. Pending Home Sales for August are due in the US today. Their outlook is negative. Nevertheless, futures for US stock indices are now growing in anticipation of the speech of the head of the Fed at the ECB forum.
Commodity Market news
| Commodities | Change |
|---|---|
| WTI Crude | -0.78% |
| Brent Crude Oil | -0.63% |
Today world oil prices are falling for the second day in a row awaiting the release of official data on inventories. Yesterday, WTI quotes renewed their 3-year high, but then they began to actively correct downward. The independent American Petroleum Institute unexpectedly announced an increase in US oil reserves for the week by 4.1 million barrels. This happened for the first time after 9 weeks of continuous inventory reduction. Investors fear that a decrease in oil demand may be caused by the development of a new variant of the Delta coronavirus. An additional negative was the energy crises in Britain and China. From the point of view of technical analysis, Brent was unable to overcome the psychological level of $ 80 per barrel and this provoked a downward correction. As a reminder, the next OPEC + meeting will take place on October 4. So far, nothing new is expected. The cartel should increase production by 400 thousand barrels per day. US natural gas quotes yesterday renewed their maximum since December 2008. This was facilitated by the shortage of gas in Europe due to the delay in certification of the new Nord Stream 2 gas pipeline.
Gold Market News
| Metals | Change |
|---|---|
| Gold | +0.43% |
| Silver/US Dollar | -0.49% |
Gold quotes fell slightly yesterday on the back of a strengthening US dollar and rising U.S. yields. Treasury. High inflation in the United States and the ongoing global coronavirus epidemic provide strong support for precious metals prices. Today’s ECB Forum may affect the dynamics of exchange rates and gold quotes. Note that the U.S. is expected to speak on Thursday. Federal Reserve Chairman Jerome Powell and U.S. Treasury Secretary Janet Yellen on the House Banking Committee.