Market Overview - Page 88

The portion of the UK inflation data showed that the problem is in no hurry to recede. The consumer price index returned to 10.1% y/y, changing hopes that the trend had already reversed. The retail price index is climbing further.

The German ZEW Economic Sentiment index unexpectedly improved in October, marking an increase from -61.9 to -59.2, whereas it had been expected to dip even deeper to -66.7. The index shows some signs of stabilisation, dropping to the same territory.

The exchange rate of the Japanese yen to the dollar is renewing its 32-year lows since the beginning of the week, and there is no end to the move. The USDJPY has touched and exceeded 149 and has gained about.

Last week brought two inflation surprises to the US markets. The first was the sensational CPI data for September. But on Friday evening, we turned our attention to another equally important indicator, inflation expectations. The University of Michigan Consumer Sentiment.

Three weeks ago, oil started a 22% rally due to OPEC+ production cuts and bounced back after being technically oversold. However, the 8% drop in quotations last week showed that bears still dominate this market, which several technical factors can.

Thursday’s performance in crucial US equity indices appeared to be the long-awaited reversal pattern: a long decline, final capitulation on bad news, and strong reversal for no apparent reason. The Nasdaq100 index is up more than 6.5% from its intraday.

U.S. consumer prices added 0.4% in September, versus a forecast of 0.2% and an increase of 0.1% a month earlier. Annual inflation slowed from 8.3% to 8.2% versus the expected 8.1%. Yesterday’s more vital producer price readings suggested the possibility.

The release of meeting minutes from the FOMC Meeting on September 20-21 produced another round of hawkish rhetoric from the world’s top central bank. The comments, whilst not allowing the markets to develop a rebound from the multi-month lows, did.

Market picture Bitcoin changed little over the day, remaining near $19.1K as the external outlook turned bleak, but there was no positive change either. Ethereum is trading near $1300, but the top altcoins are mostly down, losing between 0.2% (Tron).

US producer prices rose 0.4% m/m, stronger than 0.2% as expected. The annual inflation rate remains on a slowing trend at 8.5% in September compared to 8.7% a month earlier. The core price index slowed from 7.3% y/y to 7.2%,.

The Bank of England’s frenzy of emergency bond market support is rocking the currency market boat, leaving GBPUSD as one of the protagonists on FX. The Bank of England extended emergency support to the debt market yesterday to include inflation-linked.

Nasdaq100 has a very similar pattern to what happened in the early 2000s, and the Fed’s behaviour adds to the story. In a decisive move downwards, the Nasdaq100 closed the third quarter (and the fiscal year in the USA) below.