- European equities post first monthly drop since January
- US initial jobless claims unexpectedly rise for a third week
- Potential US government shutdown weighs on market sentiment
- Oil moves higher after China ordered energy firms to "Secure supplies at all costs"
European indices finished today's session lower, with DAX widening September losses to 3.3%, the first monthly drop in 8 months as investors remain concerned about the supply chain disruptions and rising inflation. According to today's figures, consumer prices in Germany advanced 4.1% YoY this month, the fastest pace since December of 1993. Meanwhile ECB upholds its dovish rhetoric while the FED is expected to begin tapering in the near future. Other economic data releases showed, Germany’s jobless rate remained unchanged at 5.5% in September, while the Eurozone jobless rate fell slightly to 7.5% in August, in line with market estimates.
US indices erased early gains and all the major US indexes are trading lower at the end of third quarter as investors await end of negotiations regarding infrastructure bill and hope a government shutdown could be avoided. On the data front, initial claims unexpectedly rose for the 3rd week, Chicago PMI reading slightly disappointed, while a report from the Commerce Department revised second-quarter growth to be slightly higher.
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Open account Try demo Download mobile app Download mobile appOil is trading higher after the Chinese government ordered state-owned energy companies "Secure supplies at all costs" for the incoming winter season. Also soaring natural gas prices provide additional support for oil prices. Earlier in the session, oil prices came under selling pressure after disappointing factory activity figures from China. Precious metals are trading higher, attempting to erase recent losses. Gold surged more than 2% and silver rose over 3%. The rebound in precious metals prices was not accompanied by stronger movements of the US dollar or bond yields. Gold may have reacted to Powell's slightly softer tone during his speech before Congress today. Either way, the Fed does not seem to be changing its stance, although it is certain that the key player will have a lot to say. That player is Wall Street. If the downward movement becomes stronger, we can rather forget about tapering.
The dollar itself was very strong today and the EURUSD pair fell below 1.16 level! Even slightly weaker jobless claims data did not affect the dollar. The most important currency in the world is now also gaining due to the negative sentiment that currently prevails on the stock market.
US100 launched today’s session higher however buyers again failed to break above resistance at 14,900 pts and index retreated towards major support at 14,710 pts which is marked with the lower limit of the 1:1 structure and lower bound of the wedge formation. Should break lower occur, then the next target for sellers is located around 14,450 pts. Source: xStation5
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