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Stocks Recover as PBOC Pumps Liquidity

“The wise man put all his eggs in one basket and watches the basket.” – Andrew Carnegie

 

 

HEADLINES

 

 

  • Dollar slumps as risk appetite rebounds
  • Market expectations for Bank of England rate rise shift to early 2022
  • Oil prices rise, hit 2-month highs on supply worries
  • Gold settles at lowest in more than 6 weeks
  • S&P 500 Rallies as Bulls Find Joy in Energy, Financials
  • Bitcoin bulls make a run on $45K after Twitter debuts crypto tipping

 

 

FOREX

 

 

Dollar slumps as risk appetite rebounds

 

The dollar fell across the board on Thursday as improved risk sentiment in global financial markets wiped out its gains in the previous session after the U.S. Federal Reserve flagged plans to dial back its stimulus this year. Commodity currencies are broadly higher while havens are weaker, leaving the USD trading generally lower after a firm close following the FOMC (Federal Open Market Committee)

 

Market expectations for Bank of England rate rise shift to early 2022

 

Investors now expect UK interest rates to rise by February next year after the Bank of England signalled growing concern about a rise in inflation — with some even viewing a 2021 increase as an outside possibility. Sterling was buoyed by the prospect of higher borrowing costs, while the price of UK government debt sank as traders brought forward their bets on the timing of the first rate increase.

 

 

COMMODITIES

 

 

Oil prices rise, hit 2-month highs on supply worries

 

Oil prices rose on Thursday, with Brent crude touching its highest level in more than two months, supported by growing fuel demand and a draw in U.S. crude inventories as production remained hampered in the Gulf of Mexico after two hurricanes. Supply concerns had funds taking longer positions, analysts said.

 

 

Gold settles at lowest in more than 6 weeks

 

Gold futures fell on Thursday, with prices marking their lowest finish in more than six weeks, as investors gravitated toward equities and away from assets perceived as havens. So far, China property giant Evergrande’s problems have been contained, the Federal Reserve is moving toward tapering and at the Bank of England’s monetary policy committee vote, there were two “hawkish dissenters” calling for reducing stimulus as well.

 

 

STOCKS

 

 

S&P 500 Rallies as Bulls Find Joy in Energy, Financials

 

The S&P 500 closed higher Thursday, as the broader market continued to make up ground on losses earlier this week, underpinned by energy and financials. Cyclicals stocks led the broader move higher as investor concerns eased about a China-led hit to the global economy from the possible collapse of real estate giant Evergrande. In a move that reassured investors that Beijing would seek to limit the impact of Evergrande’s potential downfall, China's central bank pumped another 120 billion yuan of liquidity into the banking system overnight Thursday.

 

 

CRYPTO

 

 

Bitcoin bulls make a run on $45K after Twitter debuts crypto tipping

 

Bullish optimism was on the rise across the cryptocurrency market on Sept. 23 as prices continue to recover from this week's volatility… The timing of the spike in BTC price aligns closely with Twitter's announcement that users will now be able to tip other users with cryptocurrencies like Bitcoin thanks to an integration with Strike, a payment application built on the Lightning network that enables low-cost Bitcoin transactions.

 

 

CHART

 

 

Aussie dollar / US dollar – 4 hour Candlesticks

Source: GKFX Prime Metatrader 4

AUD/USD has broken back above a downtrend line which is corroborated by a breakout in the RSI, both indicating a new uptrend. - 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/stock-market-news/sp-500-rallies-as-bulls-find-joy-in-energy-financials-2625202
https://www.reuters.com/article/global-oil/update-7-oil-prices-rise-hit-2-month-highs-on-supply-worries-idUSL1N2QP05S
https://www.marketwatch.com/story/gold-futures-slide-as-metals-market-weighs-fed-policy-11632402130
https://www.reuters.com/business/dollar-slumps-risk-appetite-rebounds-2021-09-23/
https://www.ft.com/content/8d3e9f84-7cf9-4497-aa27-5fd297abcd69
https://cointelegraph.com/news/bitcoin-bulls-make-a-run-on-45k-after-twitter-debuts-crypto-tipping

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