WEEKLY MARKET RECAP
Your weekly global financial market newsletter
WEEKLY MARKET RECAP
Your weekly global financial market newsletter
The S&P 500 Index faced its fourth consecutive weekly decline, as rising interest rates seemed to dampen investor confidence. Utilities saw the most significant losses within the index, while energy stocks stood out with stronger performance. On the other hand, the S&P MidCap 400 Index and the small-cap Russell 2000 Index, which have notably trailed large-cap stocks this year, managed to secure slight gains. In terms of local currency, the pan-European STOXX Europe 600 Index closed 0.67% lower due to concerns over prolonged higher interest rates and a sluggish Chinese economy. Germany’s DAX fell by 1.10%, and the UK’s FTSE 100 Index experienced a 0.99% decline.
US30 -1.34% |
US100 +0.10% |
US500 -0.74% |
GER40 -1.10% |
Brent crude futures hovered around the $93.5 per barrel mark on Friday, closing the month and the quarter on an upward trajectory, primarily due to tightening global oil supplies, which outweighed concerns about demand. Throughout September, the international oil benchmark has increased by approximately 8%, and it surged by over 20% in the third quarter. This rally was triggered by OPEC+ leaders Saudi Arabia and Russia, who extended their joint supply cut of 1.3 million barrels per day until the year’s end, raising concerns about a more extensive market deficit in the fourth quarter. Russia’s imposition of restrictions on fuel exports to stabilize its domestic market and the continued decline in US crude inventories also contributed to the bullish sentiment. Investors are now turning their attention to the upcoming OPEC meeting on October 4th for further insights into production policies. However, traders remain cautious due to higher global economic uncertainties and a more hawkish monetary policy outlook in the US.
NATGAS +1.68% |
On Friday, the dollar index extended its decline below 106, primarily driven by August’s core PCE price index and headline PCE prices rising less than anticipated. Nevertheless, the DXY remains on track to register a second consecutive monthly gain, supported by increasing confidence in the US economy’s ability to withstand higher interest rates compared to other economies. Recent data revealed that the US economy maintained a robust growth rate of 2.1% in the second quarter, and initial jobless claims for last week came in below expectations at 204,000, further underscoring the strength of the labor market. While the US Federal Reserve opted to keep interest rates steady last week, they signaled another rate hike by year-end and fewer rate cuts than previously anticipated for the following year. Subsequent statements from various Fed officials have also reinforced the expectation of additional rate hikes by the central bank.
EUR/USD -0.75% |
USD/JPY +0.65% |
GBP/USD -0.33% |
USD/CAD +0.64% |
The United States Securities and Exchange Commission (SEC) has commenced legal proceedings against an accounting firm that had provided services to cryptocurrency exchange FTX prior to its bankruptcy declaration. According to a September 29 statement, the SEC alleged that Prager Metis provided auditing services to its clients without maintaining the necessary independence, as it continued to offer accounting services. This practice is prohibited under the auditor independence framework.
BTC +2.66% |
ETH +6.19% |
LTCUSD +4.43% |
XMRUSD +1.93% |
UK: Revised GDP figures for the first quarter of the year exceeded expectations, with the Office of National Statistics reporting growth at 0.3%, up from its previous estimate of 0.1%. Second-quarter GDP growth remained unchanged. However, the property market showed signs of slowing as data from the Bank of England indicated a drop in mortgage approvals for house purchases from 49,532 in July to 45,354 in August.
EU: European Central Bank (ECB) officials, including President Christine Lagarde and Chief Economist Philip Lane, reiterated their commitment to a restrictive monetary policy to address inflation. ECB Executive Board member Frank Elderson noted that interest rates may not have peaked yet and future decisions would rely on incoming data. Austrian central bank Governor Robert Holzmann suggested that persistent inflation pressures could lead to further rate hikes. Consumer prices in September rose by 4.3% annually, a slight improvement from August’s 5.2%. The core inflation rate, excluding certain categories, decreased from 5.3% to 4.5%.
US: The core Personal Consumption Expenditures (PCE) index, a closely monitored measure by the Federal Reserve, showed a 3.9% annual increase in August, marking a two-year low but still below the central bank’s 2% target. This reflects a moderation from July’s revised 4.3% rate. Durable goods orders increased by 0.2% in August, primarily driven by machinery, surpassing consensus expectations. Excluding transportation, durable goods orders rose by 0.4% from July, indicating the economy’s health, with the transportation category omitted to prevent distortions from large orders.
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