This is what you need to know to trade today Monday, October 4:
Markets have started the week on the defensive after Friday’s rally, while the dollar remains stable. New concerns about Evergrande, uncertainty about US infrastructure and news about the covi are in the spotlight.
Congress: Voting on the bipartisan infrastructure bill was suspended amid lack of support from the left of the Democratic Party. Progressives want guarantees that the largest aid of $ 3.5 trillion would be backed by centrists. Uncertainty is weighing on sentiment.
Evergrande: The Chinese construction giant is in the spotlight again after trading was suspended in shares. The fate of a $ 260 million debt payment is up in the air, yet news of some of its asset sales and an orderly restructuring provide hope. Chinese markets are closed for the holidays and resume business only on Friday.
Concerns that global growth would lag due to inflation and supply chain issues continue to weigh on sentiment.
See: Cost Rising Inflation: Just-in-Time Production Meets Its Match
Coronavirus: One of the reasons for Friday’s rally was Merck’s announcement to develop an antiviral cure for the disease. Merck’s pills still require regulatory approval. Vaccines have pushed global cases down, yet the Delta variant continues to wreak havoc, contributing to disruptions in supply chains.
The EUR / USD It has stabilized around 1.16 ahead of the Sentix consumer confidence release. The GBP/USD it is clinging to its recovery on Friday, when it rose to 1.3550. Britain continues to grapple with the current gasoline shortage. The USD/JPY it trades around 111 as Fumio Kishida becomes the Prime Minister of Japan.
The members of the OPEC + meet to discuss oil production cuts amid higher fuel prices, especially natural gas. No substantial changes are expected. The crude WTI it is trading around $ 75, close to the highs.
The report of NFP nonfarm payrolls stands out as the main event of the week and could seal the deal on the expected announcement from the Federal Reserve. Fed Chairman Jerome Powell’s signal of such a reduction in bond purchases is the main reason for the dollar rally early last week. Fed officials James Bullard and Kenneth Montgomery will speak later in the day.
cryptocurrencies: Bitcoin is holding on to the gains recorded on Friday when it shot from $ 44,000 to $ 48,000. Speculation about regulation is at stake. Ethereum is trading near $ 3,330, up from last week’s levels, while ADA is around $ 2.20.
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