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Oil hits a 7-year high

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” – Paul Samuelson

 

 

HEADLINES

 

 

  • Sterling hovers near six-day highs vs dollar, euro
  • Dollar eases from highs as traders await U.S. jobs data
  • Gold eases, but holds above $1,750 as U.S. jobs data looms
  • Oil prices jump to 7-year highs after OPEC+ agrees to stick to gradual production hikes
  • Nasdaq tumbles 2.5%, S&P 500 1.5% as crude oil surges to highest since 2014
  • European Stocks Close Weak As Inflation Worries, Evergrande's Debt Woes Weigh
  • Axie Infinity hits a new ATH at $155 while Bitcoin bulls aim for $50K
  • Strong NFP to keep the Fed on track to taper and underpin the dollar – ING

 

 

FOREX

 

 

Sterling hovers near six-day highs vs dollar, euro

 

Sterling hovered near its highest levels in almost a week against both the dollar and the euro on Monday, as a broadly stronger dollar kept the currency pinned near levels hit on Friday. Rising inflation expectations early last week saw bond yields climb higher and hit risk sentiment in equity markets, pushing sterling to its lowest levels since December 2020. Sterling moves closely in line with global risk sentiment. The pound has made a tentative recovery since the latter part of last week, hitting $1.3576 in early deals in London on Monday, its highest since Sept. 28.

 

Dollar eases from highs as traders await U.S. jobs data

 

The dollar slipped against a basket of currencies on Monday, pulling back from the 1-year high hit last week, as traders looked to U.S. jobs data at the end of the week for clues to the Federal Reserve's next move. With Chinese mainland markets closed until Thursday for the National Day holiday and South Korean markets also shut on Monday, investor attention was firmly on the upcoming U.S. data.

 

 

COMMODITIES

 

 

Gold eases, but holds above $1,750 as U.S. jobs data looms

 

Gold softened after hitting a more than one-week high earlier on Monday as U.S. Treasury yields firmed, but inflation concerns helped keep prices above key support at $1,750 as investors’ attention turned to upcoming jobs data. The report, expected to show a continued improvement in the labour market, could influence the Federal Reserve’s timeline for tapering economic support.

 

Oil prices jump to 7-year highs after OPEC+ agrees to stick to gradual production hikes

 

Oil prices spiked after OPEC+ on Monday agreed to keep its existing schedule of gradual hikes in oil production, adding to inflationary pressures engulfing global markets. West Texas Intermediate crude, the US oil benchmark, rose as much as 3% to $78.13 per barrel, its highest since 2014. Brent crude, oil's international benchmark, jumped as much as 3% to $81.77 per barrel.

The Organization of the Petroleum Exporting Countries as well as Russia and other non-member allies - also known as OPEC+ - ignored growing calls for opening the taps at a faster rate to bring down prices after oil rocketed to more than 50% this year.

 

 

STOCKS

 

 

Nasdaq tumbles 2.5%, S&P 500 1.5% as crude oil surges to highest since 2014

 

Investors move into Energy after OPEC+ is expected to stick with a planned production increase and move out of Tech as Treasury rates stay elevated. There’s a wall of worry that markets are trying to climb at the moment,” Deutsche Bank strategist Jim Reid said in a note. “We have an energy crisis, supply chain issues, higher inflation, signs of weaker growth, and lots of talk about stagflation.”

 

European Stocks Close Weak As Inflation Worries, Evergrande's Debt Woes Weigh

 

European stocks ended weak on Monday with investors largely staying cautious, fretting over risk to growth from rising inflation and China Evergrande's financial troubles. Market participants closely watched beleaguered developer China Evergrande, whose shares were suspended in Hong Kong ahead of an announcement about a major transaction.

 

 

CRYPTO

 

 

Axie Infinity hits a new ATH at $155 while Bitcoin bulls aim for $50K

 

The wider cryptocurrency market fell under pressure on Oct. 4 as the momentum generated by Bitcoin’s (BTC) weekend spike above $49,000 was overshadowed by more global concerns related to the global financial system, rising inflation and supply chain challenges.

Despite these struggles, many altcoins managed to rally, the crypto gaming and decentralized finance sectors continue to grow in popularity. Axie Infinity is a blockchain-based battle and collecting game that has been one of the breakout stars of 2021 and in addition to booking a stellar 5,000% rally, the game also helped to introduce the wider public to the powers of play-to-earn games and the income opportunities that they present.

 

 

ANALYSIS

 

 

Strong NFP to keep the Fed on track to taper and underpin the dollar – ING

 

“Technically the dollar looks on the verge of a significant break-out and a strong US jobs report could cement that trend… We’ll focus on progress on the US debt ceiling – a stopgap bill has been signed to fund the government until early December – but brinkmanship in the Senate could easily lead to a mishap for risk assets at a time when earnings expectations are being revised lower.”

 

 

CHART

 

 

Gold – 4-Hour Candlesticks

Source: GKFX Prime Metatrader 4

XAU/USD has broken above a downtrend line and is re-testing the 20-day moving average. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

 

https://www.fxstreet.com/economic-calendar
https://www.investing.com/news/cryptocurrency-news/axie-infinity-hits-a-new-ath-at-155-while-bitcoin-bulls-aim-for-50k-2634310
https://www.fxstreet.com/news/strong-nfp-to-keep-the-fed-on-track-to-taper-and-underpin-the-dollar-ing-202110040657
https://www.reuters.com/article/britain-sterling/sterling-hovers-near-six-day-highs-vs-dollar-euro-idUSL1N2R00BR
https://www.investing.com/news/economy/dollar-firm-as-china-evergrande-nerves-resurface-2633320
https://www.reuters.com/article/global-precious/precious-gold-eases-but-holds-above-1750-as-u-s-jobs-data-looms-idUSL4N2R0164
https://markets.businessinsider.com/news/commodities/oil-price-outlook-brent-wti-opec-gradual-output-hike-production-2021-10
https://seekingalpha.com/news/3748078-nasdaq-skids-down-as-dow-jones-edges-up-amid-opec-china-infrastructure-news?utm_source=markets.businessinsider.com&utm_medium=referral
https://markets.businessinsider.com/news/stocks/european-stocks-close-weak-as-inflation-worries-evergrande-s-debt-woes-weigh-1030841586

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