Worst quarter for Wall Street since Covid

“The four most dangerous words in investing are: ‘this time it’s different.'” — Sir John Templeton

 

 

HEADLINES

 

 

• U.S. dollar slips from 1-year high on weak data, consolidation
• Economic Data from the Eurozone Fails the EUR again
• Gold Spikes at End-Sept; Too Little, Too Late for Month, Quarter
• Oil futures finish higher, with U.S. prices up a sixth quarter in a row
• Stocks extend decline as inflation fears persist
• Wall Street posts monthly loss, worst quarter since COVID outbreak
• Fed Chair Powell Says He Has ‘No Intention’ of Banning Crypto

 

 

FOREX

 

 

U.S. dollar slips from 1-year high on weak data, consolidation

 

The dollar edged lower from a one-year high on Thursday in choppy trading, pressured a little bit by a rise in U.S. weekly jobless claims, with investors also consolidating gains after a steep rise the last few sessions.

 

Economic Data from the Eurozone Fails the EUR again

 

Key stats included French consumer spending, French and Italian inflation, and German unemployment figures. It was a mixed set of numbers, testing support for the EUR through the early part of the session, however. In response to today’s stats, the EUR fell to a post-stat and current day low $1.15916 before rising to a post-stat and current day high $1.16097.

 

 

COMMODITIES

 

 

Gold Spikes at End-Sept; Too Little, Too Late for Month, Quarter

 

Gold had one of its better days for September as the month ended. But the gain was too little, too late to be meaningful for the month or even the quarter. It finished September down 3.4%, while losing 0.8% for the third quarter. The latest pop in gold came despite an uptick in U.S. Treasury yields. Traders said the rise could be on overdue concerns about inflation as oil prices were projected to get to $90 per barrel from current rates just below $80.

 

Oil futures finish higher, with U.S. prices up a sixth quarter in a row

 

Oil futures finished higher Thursday, contributing to a sixth straight quarterly climb for U.S. benchmark prices, as traders bet on higher crude demand after a report said China told state-owned energy companies to build their reserves to meet power needs for the winter.

 

 

STOCKS

 

 

Stocks extend decline as inflation fears persist

 

Global stock markets continued to fall Thursday as inflation fears persisted and expectations grew that the U.S. Federal Reserve would tighten policy in the coming months. Earlier in the week, global shares suffered their worst rout since January. A heavy tech sell-off on Tuesday led Wall Street to its steepest drop since mid-July. Major U.S. and European stock indices staged a partial recovery Wednesday but were unable to build momentum.

 

Wall Street posts monthly loss, worst quarter since COVID outbreak

 

The three Wall Street major indexes ended lower on Thursday and posted their worst quarters in at least 12 months, following a tumultuous month and period wracked by concerns over COVID-19, inflation fears and budget wrangling in Washington. The U.S. Senate and House approved a stopgap spending bill to keep the government running late in the session, but after a brief market uptick, stocks resumed their decline, dragging even the Nasdaq into the red after trending higher most of the day.

 

 

CRYPTO

 

 

Fed Chair Powell Says He Has ‘No Intention’ of Banning Crypto

 

U.S. Federal Reserve Chairman Jerome Powell said he does not intend to ban cryptocurrencies, but said stablecoins need greater regulatory oversight. Powell made the comments in a two-hour long House Financial Services Committee meeting on Thursday. The meeting, meant to serve as a forum for representatives to ask Treasury Secretary Janet Yellen and Powell about the Treasury Department’s and Federal Reserve’s pandemic response, featured several questions about cryptocurrencies.

 

 

CHART

 

 

Gold – 4 hour Candlesticks

Source: GKFX Prime Metatrader 4

XAU/USD has rallied off the lows to challenge resistance from a downtrend line, while forming a bullish engulfing candlestick on the daily chart.. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.fxempire.com/news/article/economic-data-from-the-eurozone-fails-the-eur-again-782373
https://www.reuters.com/business/global-markets-wrapup-4-2021-09-30/
https://www.reuters.com/business/wall-street-posts-monthly-loss-worst-quarter-since-covid-outbreak-2021-09-30/
https://www.reuters.com/business/dollar-hits-1-year-high-fed-tightening-focus-iron-ore-prices-boost-aussie-2021-09-30/
https://www.investing.com/news/commodities-news/gold-spikes-at-endseptember-too-little-too-late-for-month-quarter-2631526
https://www.msn.com/en-us/money/markets/oil-futures-finish-higher-with-us-prices-up-a-sixth-quarter-in-a-row/ar-AAOZXgs