Posted at 23 August 2022 / Categories Market Roundups
Market Roundup
•US Indexes: S&P 500 -2.14%, Nasdaq -2.55%, Dow -1.91%
• Benchmark 10-year U.S. Treasury yield rises past 3%
•Gold falls to lowest level since July 27
•Iran nuclear deal closer now than it was 2 weeks ago - U.S. State Dept
• OPEC+ has options to meet challenges, including cuts -Saudi oilmin
•U.S. Fed to raise rates by 50 bps in Sept - poll
•Canada Jul New Housing Price Index (MoM) 0.1%,0.3% forecast, 0.2% previous
•US Chicago Jul Fed National Activity 0.27,-0.19 previous
•French 12-Month BTF Auction 0.680% ,0.615% previous
•French 3-Month BTF Auction 0.058%, 0.019% previous
•French 6-Month BTF Auction 0.084%,0.163% previous
•US 3-Month Bill Auction 2.740%, 2.610% previous
•US 6-Month Bill Auction 3.110%, 3.020% previous
Looking Ahead - Economic Data (GMT)
• 01:30 Japan Services PMI 50.3 previous
• 01:30 Japan Aug Manufacturing PMI 51.0 forecast, 52.1 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro briefly fell back below parity against a robust dollar on Monday as concern that a three-day halt to European gas supplies later this month will exacerbate an energy crisis weighed on single currency . The euro bore the brunt of the selling pressure against the dollar after Russia announced late on Friday a three-day halt to European gas supplies via the Nord Stream 1 pipeline at the end of this month. The U.S. dollar index , which measures the currency against six rivals including the euro, rose to 108.47 its highest since July 15. The weakness briefly drove the euro below $1 for the first time since July 14. The euro was last down 1.1% at $0.99345 . Immediate resistance can be seen at 1.0003(38.2%fib), an upside break can trigger rise towards 1.0039(5DMA).On the downside, immediate support is seen at 0.9933 (Daily low), a break below could take the pair towards 0.9900 (23.6%fib).
GBP/USD: The British pound weakened against the dollar on Monday as surging energy costs and a summer of strikes highlighted the UK cost of living crisis and intensified fears of further economic slowdown weighed on pound. Amid worries around Britain's surging inflation and declining economy, sterling recorded its biggest weekly fall against the U.S. dollar since September 2020 on Friday. Britain’s cap on domestic energy prices is expected to rise to over 4,200 pounds a year in January, up 230% on the year before, due to soaring wholesale costs and changes in the way the cap is set, analysts said in August. The pound was last down 0.64% at $1.17565 .Immediate resistance can be seen at 1.1832(38.2%fib), an upside break can trigger rise towards 1.1860(5DMA).On the downside, immediate support is seen at 1.1743(Daily low),a break below could take the pair towards 1.1729 (23.6%fib).
USD/CAD: The Canadian dollar weakened to its lowest level in more than five weeks against its U.S. counterpart on Monday, as investors worried about the global economic outlook and awaited an influential central bank conference this week. Federal Reserve Chair Jerome Powell is due to speak at the Jackson Hole symposium in Wyoming on Friday, with expectations growing of further rate hikes rather than a pivot to a more dovish policy. The Canadian dollar was trading 0.4% lower at 1.3050 to the U.S. dollar , its fourth straight day of declines. The currency touched its weakest level since July 15 at 1.3061 .Immediate resistance can be seen at 1.3076 (Higher BB), an upside break can trigger rise towards 1.3119(23.6%fib).On the downside, immediate support is seen at 1.2997(38.2%fib), a break below could take the pair towards 1.2984(5DMA).
USD/JPY: The dollar strengthened against yen on Monday amid growing fears that interest-rate hikes in the United States and Europe, aimed at curbing inflation, would weaken the global economy.Against a basket of currencies, the dollar rose 0.8% to a more than five-week high of 109.02 , not far from the two-decade peak of 109.29 touched in mid-July. The greenback has found support in recent sessions as several Federal Reserve officials reiterated an aggressive monetary tightening stance ahead of the Fed's Jackson Hole, Wyoming, symposium this week. Strong resistance can be seen at 137.74(23.6%fib), an upside break can trigger rise towards 138.49(Higher BB).On the downside, immediate support is seen at 136.711 (5DMA), a break below could take the pair towards 135.96(38.2%fib).
Equities Recap
European stocks tumbled on Monday, with fears of aggressive monetary tightening and concerns over Europe's energy crisis keeping investors nervous.
UK's benchmark FTSE 100 closed up by 0.22 percent, Germany's Dax ended down by 2.32 percent, France’s CAC finished the day down by 1.80 percent.
Wall Street ended sharply lower on Monday as investors fretted about a U.S. Federal Reserve gathering later this week in Jackson Hole, Wyoming, that is expected to reinforce a strong commitment by the central bank to stamp out inflation.
Dow Jones closed down at 1.91 percent, S&P 500 ended down at 2.14 percent, Nasdaq settled down by 2.55 % percent.
Treasuries Recap
U.S. Treasury yields rose on Monday, as investors awaited a Federal Reserve gathering later this week in Jackson Hole, Wyoming, that is expected to reinforce the central bank's commitment to stamping out inflation.
The benchmark 10-year yield hit a five-week high of 3.039%, while the 30-year yield climbed to a seven-week peak of 3.268%.
Commodities Recap
Gold prices fell to near a one-month low on Monday amid sharp declines in precious metals due to a stronger dollar, with looming Federal Reserve interest rate hikes also denting bullion's appeal.
Extending losses into a sixth session, spot gold was down 0.6% at $1,736.74 per ounce by 1:51 p.m. ET (1751 GMT) after hitting its lowest since July 27 earlier in the session. U.S. gold futures settled down 0.8% at $1,748.4.
Oil prices bounced off session lows to trade nearly flat in a volatile session on Monday as markets weighed Saudi Arabia's warning that OPEC+ production could cut output against the possibility of a nuclear deal that could return sanctioned Iranian oil to the market.
Brent crude futures for October settled at $96.48 per barrel, down 24 cents, or 0.25%. It had fallen as much as 4.5% earlier in the day, breaking a three-day streak of gains.