Posted at 13 October 2022 / Categories Market Roundups
Market Roundup
•U.S. Consumer Price Index rose 0.4% in September
•Benchmark U.S. 10-year Treasury yields up
•U.S. Indexes: Dow up 2.8%, S&P 500 up 2.6%, Nasdaq up 2.2%
•US Sep Core CPI (MoM) 0.6%,0.5% forecast,0.6% previous
•US Initial Jobless Claims 228K, 225K forecast,219K previous
•US Continuing Jobless Claims 1,368K,1,365K forecast,1,361K previous
•US Jobless Claims 4-Week Avg. 211.50K, 206.50K previous
•US Sep CPI (YoY) 8.2% ,8.1% forecast, 8.3% previous
•US Sep CPI (MoM) 0.4%,0.2%forecast ,0.1% previous
•US Sep Core CPI (YoY) 6.6%,6.5% forecast , 6.3% previous
•US Natural Gas Storage125B, 123B forecast , 129B previous
•US Cushing Crude Oil Inventories-0.309M, 0.273M previous
•US Crude Oil Inventories 9.880M,1.750M forecast ,-1.356M previous
•US Gasoline Inventories 2.023M, -1.825M forecast , -4.728M previous
Looking Ahead - Economic Data (GMT)
•23:50 Japan Sep M3 Money Supply 2,075.5T previous
•23:50 Japan Foreign Bonds Buying -886.3B previous
•23:50 Japan Foreign Investments in Japanese Stocks -501.8B previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro strengthened on Thursday as dollar gave up earlier gains as investors poured back into riskier bets after digesting a red-hot U.S. inflation reading that fueled bets for a big Federal Reserve rate hike next month. Traders reversed course after initially flipping to safety mode when the U.S. Labor Department's consumer prices index (CPI) report showed headline CPI gaining 8.2% annually as rents surged by the most since 1990 and food prices rose. Core CPI, which excludes food and fuel prices, beat forecasts at 6.6%. The euro was up as much as 0.72% against the dollar as nervous investors reacted to the data. Immediate resistance can be seen at 0.9777(9DMA), an upside break can trigger rise towards 0.9843 (38.2%ib).On the downside, immediate support is seen at 0.9841(38.2%fib), a break below could take the pair towards 0.9549 (Lower BB).
GBP/USD: The pound held firm in volatile trade on Thursday, having surged to a one-week high after reports of a possible U-turn by the UK government on its fiscal plans, before strong U.S. inflation data tempered some of those gains. The pound surged as much as 1.8% versus the dollar after Sky News reported the British government is discussing making changes to the fiscal plan announced last month. The market is looking ahead to the end of the Bank of England's emergency debt support programme on Friday. The pound was up 0.8% at $1.1191. Immediate resistance can be seen at 1.1237 (38.2%fib), an upside break can trigger rise towards 1.1393 (Daily high).On the downside, immediate support is seen at 1.1153 (21DMA), a break below could take the pair towards 1.0877(23.6%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday, rebounding from its lowest level in more than two years, as equity markets reversed course after they were pressured earlier in the day by hot U.S. inflation data.Wall Street’s main indexes rallied, brushing aside prospects of additional aggressive interest rate hikes by the Federal Reserve after data showed that U.S consumer prices increased at an annual rate of 8.2% in September. Adding to support for the loonie, the price of oil, one of Canada’s major exports, settled 2.1% higher at $89.11 a barrel, supported by low levels of diesel inventory. The Canadian dollar was trading 0.6% higher at 1.3725 per U.S. dollar , after touching its weakest level since May 2020 at 1.3977. Immediate resistance can be seen at 1.3806 (38.2%fib), an upside break can trigger rise towards 1.3985 (23.6%fib).On the downside, immediate support is seen at 1.3649 (50%fib), a break below could take the pair towards 1.3623(21 DMA).
USD/JPY: The dollar hit 32-year high against the yen on Thursday as hotter-than-expected U.S. inflation data bolstered bets for additional tightening by the Federal Reserve. U.S consumer prices increased more than expected in September and underlying inflation pressures continued to build up, reinforcing expectations that the Federal Reserve will deliver a fourth 75-basis points interest rate hike next month.The consumer price index rose 0.4% last month after gaining 0.1% in August, the Labor Department said on Thursday. Economists polled had forecast the CPI climbing 0.2%.Strong resistance can be seen at 147.70 (23.6%fib), an upside break can trigger rise towards 148.99 (Higher BB).On the downside, immediate support is seen at 146.82(5DMA), a break below could take the pair towards 146.13(38.2%fib).
Equities Recap
European stocks plunged sharply Thursday afternoon after data showing a bigger than expected increase in U.S. consumer price inflation raised concerns about more aggressive rate hikes by the Fed, but rebounded swiftly and ended the session with strong gains.
The UK's benchmark FTSE 100 closed up by 0.35 percent, Germany's Dax ended up by 1.51 percent, and France’s CAC finished the day up by 1.0411 percent.
U.S. stocks surged to close more than 2% higher on Thursday, as technical support and investors covering short bets drove a dramatic rebound from a selloff earlier in the day.
Dow Jones closed up by 2.83 percent, S&P 500 ended up 2.60 percent, Nasdaq finished the day up by 2.23 percent.
Treasuries Recap
Benchmark Treasury yields jumped to 14-year highs on Thursday after data showing larger than expected gains in U.S. consumer prices last month raised fears the Federal Reserve's ongoing efforts to tame inflation will spark a recession.
The yield on 10-year Treasury notes rose to a 14-year high and was up 12.4 basis points at 4.026%; The two-year U.S. Treasury yield, surged to a 15-year high and was up 18.3 basis points at 4.470%.
Commodities Recap
Oil prices settled about 2% higher on Thursday, as low levels of diesel inventory ahead of winter triggered buying and reversed early losses on surprisingly high stocks of crude and gasoline.
Brent crude futures for December delivery rose $2.12 to $94.57 a barrel, a 2.29% gain. U.S. crude rose $1.84, or 2.1%, to $89.11 per barrel.
Gold prices fell on Thursday as a higher-than-expected rise in U.S. September inflation cemented bets the Federal Reserve will persist with aggressive interest rate hikes.
Spot gold dropped 0.3% to $1,666.77 per ounce by 12:42 p.m. EDT (1642 GMT). U.S. gold futures settled almost flat at $1,677.00.