Market Overview - Page 61

The price of a troy ounce of gold fell 1.4% on Wednesday to $1875, its most significant drop since early June, building this week’s loss to 2.7%. Gold has not been so cheap in Dollars since the first half of.

The ECB started raising interest rates in September last year, which was immediately reflected in the dynamics of money supply and lending. This process has continued to this day. Credit growth in the eurozone has slowed to 1.0% y/y –.

Global markets are in sell-off mode, but oil has quickly recovered and is rising for the second day after a shallow correction. The dollar index added for the 11th week in a row – one of the most persistent rallies.

The Dow Jones Index is testing the long-term trend’s strength in the form of the 200-day moving average. The touching of this curve at the end of May and a brief dip below in March was characterised by increased buying..

The British Pound lost ground against the Dollar for the fifth consecutive session, falling below the 1.2200 level. GBPUSD is down 4% since the beginning of the month, when pressure on the Pound intensified, and 7.3% from July’s peak. Fundamentally,.

There is growing evidence that equity markets are amid a deep correction from the run-up that began almost 12 months ago. The reaction of Europe’s significant indices in recent days has been telling. The German DAX40 fell below its 200-day.

Germany’s Ifo business climate index held steady in September at the previous month’s level despite expectations of further deterioration. The business climate indicator fell from 85.8 to 85.7, better than the expected 85.1 but still the lowest since mid-2020. Excluding.

The US stock market is attempting to bounce back on Friday after the heavy sell-off on Wednesday and Thursday. The Nasdaq-100 index was close to key levels where it reversed gains made in June and August. The S&P 500 has.

The Bank of England has left its key interest rate unchanged at 5.25%. The likelihood of such an outcome was actively priced into Pound quotes following yesterday’s UK inflation report. The accompanying commentary noted the Bank of England’s worsening outlook.

The Swiss National Bank left its key interest rate unchanged at 1.75%. On average, markets had been predicting a 25-basis point hike, contrary to our expectations.  Most likely, market participants’ forecasts were influenced by the ECB rate hike a week.

UK consumer inflation slowed from 6.8% to 6.7% y/y, contrary to the expected acceleration to 7.0%. Core inflation, excluding food and energy, saw an even more significant slowdown of 6.2% from 6.9% y/y, well below the average forecast of 6.8%..

The Canadian dollar reversed course to the upside a week and a half ago, and its strength is gaining momentum on the back of both a fresh wave of demand for commodities and robust economic data. USDCAD is down 1.9%.