This is what you need to know to trade today Monday, September 20:
The risk aversion dominates the markets, benefiting the US dollar and weighing on stocks, commodities and cryptocurrencies as well. Evergrande issues in China stand out ahead of the Fed’s decision later this week.
Evergrande, the second largest real estate company in the world, is in financial difficulties and the authorities do not agree to rescue it. While markets in China are closed due to a holiday, stocks around the world are down on fears of a broader crisis in Chinese real estate, and the implications for global growth.
The embattled company is already offering unfinished properties as payment for its massive $ 300 billion mountain of debt and may not pay a substantial debt payment on Thursday.
The raw Materials used in construction are falling and so is the oro remains on the defensive, trading around $ 1,750. The crude WTI it is trading around $ 71, below the highs.
The safe haven US dollar has been spreading its gains, pushing the EUR/USD around 1.17 and at GBP/USD towards 1.37. The blow has also extended to cryptocurrencies, with the Bitcoin trading around $ 45,000, the Ethereum at $ 3,200 and Cardano at $ 2.20.
Concerns about rise in gasoline prices, and even possible blackouts during the winter, have been weighing on both the euro and the pound. Several small British energy companies have collapsed, while European authorities are struggling with higher costs and public anger.
The Federal Reserve It will leave its monetary policy unchanged on Wednesday, but will signal when it intends to reduce its $ 120 billion a month bond purchase plan. Tensions are rising ahead of the decision, with analysts divided on the most precise time, November or December. Slightly softer inflation and a disappointing jobs report contrast with strong retail sales.
Elections: Canadians go to the polls on Monday in a snap election. Prime Minister Justin Trudeau will remain, but to lead a minority government once again. Voters are angry at the prime minister for his decision to call them to vote and pro-business conservatives could surprise and return to power. USD / CAD is trading near 1.28.
Later in the week, the Bank of England and preliminary PMI Purchasing Managers Indices will draw investors’ attention. The Germans go to the polls on Sunday, with Finance Minister Olaf Scholz at the helm to succeed Chancellor Angela Merkel.