Top daily news
Since the beginning of the week exchange activity has been minimal. Investors are looking forward to the next Fed meeting. They do not exclude a reduction in the monthly volume of redemption of US government and mortgage bonds, which is now $ 120 billion. At the same time, the Fed rate is likely to remain at the current level of 0.25%. The PRC authorities are likely to support China Evergrande Group, which is close to default. On Friday, Evergrande Group will need to pay $ 83 million in interest on the bonds. This will support the stock market, oil and industrial metals, and the yuan.
Forex news
| Currency Pair | Change |
|---|---|
| EUR USD | +0.02% |
| GBP USD | -0.12% |
| USD JPY | +0.26% |
| AUD USD | +0.15% |
This morning, the US dollar index, for the third day in a row, continues to trade in a narrow range, in anticipation of the most important event - the next meeting of the U. S. Federal Reserve. The rate change (+ 0.25%) is not expected. However, investors do not exclude a reduction in the monthly volume of redemption of US government and mortgage bonds, which is now $ 120 billion. Note that the next Fed meeting will be held on November 3, and in October there will be no meetings. Existing Home Sales data for August will also be released in the US today. Yesterday’s Building Permits & Housing Starts were positive. The Canadian dollar strengthened this morning thanks to the victory of the Liberal Party in the parliamentary elections. Canadian Prime Minister Justin Trudeau will now remain for a third term. Christian Hawkesby, deputy head (assistant governor) of the Reserve Bank of New Zealand (RBNZ), does not exclude that the rate hike may be 0.25%, not 0.5% as investors expected. This could hinder the strengthening of the New Zealand dollar. Remember that the next meeting of RBNZ will take place on October 6.
Stock Market news
| Indices | Change |
|---|---|
| Dow Jones Index | -0.15% |
| S&P 500 | -0.08% |
| Nasdaq 100 | +0.22% |
| US Dollar Index | +0.06% |
There was no single trend on the American stock market yesterday. The Nasdaq rallied and the S&P 500 fell for the 4th time in a row. A possible tightening of the Fed’s monetary policy in the form of a reduction in the monthly volume of redemption of US bonds is positive for the dollar and negative for stock prices. This morning, futures for US stocks rose markedly on the back of the rise in Chinese indices after the weekend in China. Investors hope that the PRC authorities will provide support to China Evergrande Group, which is close to default. On Friday, Evergrande Group will need to pay $ 83 million in interest on the bonds. In addition, yesterday’s good data on the US residential real estate market reduced the likelihood of a slowdown in the US economy. British company Royal Dutch Shell (+ 1.8%) announced the sale of US shale assets in the amount of $ 9.5 billion. This caused an increase in the shares of American oil companies ConocoPhillips (+ 4%), EOG Resources (+ 1%), Marathon Petroleum (+ 1.2%). Walt Disney (-4.2%) announced a delay in the implementation of several of its commercial projects due to the new outbreak of the coronavirus. This was the main factor behind the decline in the S&P 500 and Dow indices.
Commodity Market news
| Commodities | Change |
|---|---|
| WTI Crude | +1.6% |
| Brent Crude Oil | +1.4% |
Today world oil prices are growing for the second day in a row. The independent American Petroleum Institute announced a decline in US oil reserves for the week by 6.1 million barrels. The decline in inventories has been observed for 9 consecutive weeks. An additional positive for oil was the information that the recovery in production in the Gulf of Mexico after Hurricane Ida is slower than expected. More than three weeks have passed, but oil production there is still 18% less than usual. Reducing default risks China Evergrande also supported oil prices.
Gold Market News
| Metals | Change |
|---|---|
| Gold | -0.18% |
| Silver/US Dollar | +0.33% |
Gold quotes have been increasing for the third day in a row, but they are still below the psychological level of $ 1800 per ounce. Investors are awaiting the outcome of today’s Fed meeting.