Posted at 03 October 2022 / Categories Market Roundups
Market Roundup
•French 12-Month BTF Auction 1.814%,1.855% previous
•French 6-Month BTF Auction 1.206%, 1.325% previous
•French 3-Month BTF Auction 0.646%,0.681% previous
•Canada Sep Manufacturing PMI 49.8,48.7 previous
• US Sep Manufacturing PMI 52.0, 51.8 forecast, 51.5 previous
• US Aug Construction Spending (MoM) -0.7%,-0.3% forecast, -0.4% previous
• US ISM Sep Manufacturing Employment 48.7, 53.0 forecast, 54.2 previous
• US Sep ISM Manufacturing PMI 50.9,52.2 forecast, 52.8 previous
• US Sep ISM Manufacturing Prices 51.7 ,51.9 forecast, 52.5 previous
• US 3-Month Bill Auction 3.340%, 2.880% previous
Looking Ahead - Economic Data (GMT)
•21:00 New Zealand NZIER Business Confidence (Q3) -65% previous
•21:00 New Zealand NZIER QSBO Capacity Utilization (Q3) 93.4% previous
•21:30 Australia Sep AIG Manufacturing Index 49.3 previous
•23:30 Japan Sep CPI Tokyo Ex Food and Energy (MoM) 0.3% previous
• 23:30 Japan Sep Tokyo Core CPI (YoY) 2.8% forecast, 2.6% previous
•00:30 Australia Aug Building Approvals (MoM) 5.0% forecast, -17.2% previous
•00:30 Australia Home Loans (MoM) -7.0% previous
•03:30 Australia RBA Interest Rate Decision 2.85% forecast, 2.35% previous
Looking Ahead - Events, Other Releases (GMT)
•03:30 Australia RBA Rate Statement
Currency Summaries
EUR/USD: The euro strengthened against dollar Monday as expectations for another jumbo European Central Bank rate hike this month following a red-hot inflation read-out boosted euro.Data on Friday showed that euro zone inflation zoomed past forecasts to a record high of 10.0% in September, above expectations of 9.7%. The euro fell 0.2% to $0.97785, not helped by data that showed manufacturing activity across the euro zone declined further last month.Immediate resistance can be seen at 0.9845 (38.2%fib), an upside break can trigger rise towards 0.9976 (50%fib).On the downside, immediate support is seen at 0.9748 (9DMA), a break below could take the pair towards 0.9731(23.6%fib).
GBP/USD: The pound edged up on Monday on news Britain would reverse plans to cut the highest rate of income tax, one contentious part of a package of financial measures that last month sent sterling and British government bonds into meltdown. Finance minister Kwasi Kwarteng said the decision to scrap the top rate tax cut had been taken with "some humility and contrition", after his party's lawmakers reacted with alarm to a move that favoured the rich during an economic downturn. . Immediate resistance can be seen at 1.1350(38.2%fib), an upside break can trigger rise towards 1.1421(30DMA).On the downside, immediate support is seen at 1.1109 (11DMA), a break below could take the pair towards 1.1049 (23.6%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday, rebounding from its lowest level in more than two years, as oil prices jumped and despite domestic data showing a second straight month of declining factory activity. The price of oil, one of Canada’s major exports, rose as OPEC+ considers reducing output by more than 1 million barrels per day (bpd) to buttress prices with what would be its biggest cut since the start of the COVID-19 pandemic. The Canadian dollar was up 1% at 1.3626to the greenback , its biggest advance since May 13.Immediate resistance can be seen at 1.3685 (38.2%fib), an upside break can trigger rise towards 1.3824 (23.6%fib).On the downside, immediate support is seen at 1.3628 (9DMA), a break below could take the pair towards 1.3552 (50%fib).
USD/JPY: The dollar steadied against the Japanese yen on Monday after finance minister Shunichi Suzuki said Japan stood ready intervene in Forex market. Monday's fall came as finance minister Shunichi Suzuki said Japan stood ready for "decisive" steps in the foreign exchange market if excessive yen moves persisted .The yen has been weakening due to Japan's policy of keeping interest rates pinned down at a time when they are rising elsewhere. After much speculation, authorities last month intervened in markets, spending a record of 2.8 trillion yen ($19.7 billion) to prop up the currency.Strong resistance can be seen at 145.09 (23.6%fib), an upside break can trigger rise towards 145.65(Higher BB). On the downside, immediate support is seen at 144.61 (5DMA), a break below could take the pair towards 143.47(38.2%fib).
Equities Recap
European shares gained on Monday, in a positive start to the last quarter of this year, as a slew of bleak economic activity data helped ease some jitters around the pace of monetary policy tightening by central banks to stamp out runaway inflation.
The UK's benchmark FTSE 100 closed up by 0.22 percent, Germany's Dax ended up by 0.79 percent, and France’s CAC finished the up by 0.55 percent.
Wall Street stocks ended with sharp gains on Monday at the start of the final quarter of a tumultuous year with interest rate hikes amid historically hot inflation and fears of slowing economic growth.
Dow Jones closed up by 2.66 percent, S&P 500 ended up 2.59 percent, Nasdaq finished the day up by 2.27 percent.
Commodities Recap
Gold prices jumped more than 2% on Monday boosted by a dip in the U.S. dollar and bond yields, as recent lows enticed investors and also sparked a rally in silver in potentially its best day since late-2008.
Spot gold rose 2.3% to $1,698.48 per ounce by 3:39 p.m. ET (1939 GMT), which could be its biggest daily rise since March 8. U.S. gold futures settled 1.8% higher at $1,702.
Oil prices jumped nearly $4 a barrel on Monday as OPEC+ considered reducing output by more than 1 million barrels per day (bpd) to buttress prices with what would be its biggest cut since the start of the COVID-19 pandemic.
Brent crude futures for December delivery rose $3.72 to $88.86 a barrel, a 4.4% gain. U.S. West Texas Intermediate crude rose $4.14, or 5.2%, to $83.63 a barrel.