This is what you need to know to trade today Friday, October 1:
Markets are taking a step back to the start of the final quarter of 2021 as rising energy costs, fears of the Fed’s downsizing and American political struggles weigh on sentiment. The dollar is gaining ground against all assets despite falling yields. The underlying US PCE and ISM Manufacturing PMI will be the focus of investors.
Risk aversion: September was the worst month for US stock markets since March 2020, and October has also started with red on the screens. The next Federal Reserve announcement on tapering has moved away from the driver’s seat to determine sentiment. However, the dollar continues to push for safe-haven cash flows.
Energy crisis: Chinese authorities are trying to stockpile natural gas “at all costs” and, according to the news, they say power outages should not be tolerated. The news adds to already rising prices in Asia and also in Europe before the cold weather has gotten serious. Higher costs could derail recovery even if blackouts are avoided.
CongressDemocrats delayed a vote on a bipartisan infrastructure bill in response to objections from the progressive wing, who want guarantees on the largest spending bill. House Speaker Nancy Pelosi hopes to push through economic legislation on Friday.
US lawmakers quickly passed a law that funds the government until December 3, avoiding a government shutdown. However, they have not yet raised the debt ceiling, leaving the remote possibility of default in mid-October.
The EUR/USD it is trading well below 1.16, the lowest level since November 2020. Eurozone inflation figures will show an increase in the annual CPI consumer price index from 3% to 3.3%. German and Spanish figures exceeded estimates. Final PMI Manufacturing Purchasing Managers Indices are also released today.
The GBP/USD it is trading around 1.3450, out of the 2021 lows but under pressure. Britain continues to grapple with gas station shortages. The final manufacturing PMI is also of interest.
The oro it is trading around $ 1,750, clinging to gains made on Thursday. The precious metal is still dependent on returns.
The underlying PCE personal consumption expenditure,The Federal Reserve’s preferred indicator of inflation, will show moderation in August after touching 3.6% year-on-year in both June and July. Fed Chairman Jerome Powell said he expects inflationary pressures to ease in the first half of 2022.
The USD / CAD it is trading around 1.27, rising as oil prices lag behind natural gas costs and ahead of Canada’s release of July’s monthly growth figures. A small contraction is on the table after the nation reported a 0.7% growth rate in June.
The cryptocurrencies it’s mixed on Friday, with Bitcoin trading around $ 44,000, Ethereum just above $ 3,000, and ADA around $ 2.10.
The ISM Manufacturing PMI it is released later in the day and serves as the first hint toward next week’s NFP nonfarm payrolls. The indicator will show robust growth, but persistent inflationary pressures.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
