U.S. stocks fell the most since March on Thursday (September 21), while 10-year U.S. Treasury yields climbed as the latest data on the labor market strengthened the Federal Reserve's case for keeping interest rates high for a long time.
The closing prices of major currencies and commodities on September 21:
Foreign exchange: EUR/USD closed at 1.0657; GBP/USD closed at 1.2294; AUD/USD closed at 0.64090; USD/JPY closed at 147.540; USD/CAD closed at 1.34825; USD/CHF closed at 0.90400.
Commodities: spot gold closed at US$1,919.80/oz; Comex gold futures closed at US$1,939.6/oz; spot silver closed at US$23.387/oz; Comex silver futures closed at US$23.687/oz; Brent crude oil closed at US$92.16/barrel; NYMEX crude oil closed at US$92.16/barrel; US$89.63/barrel.
Important news review:
1. The U.S. dollar’s recent gains have put it on track to form a golden cross, a short-term bullish technical trading chart pattern for the currency, according to a Bank of America Global Research report released on Wednesday.
Bank of America warns the U.S. dollar index is about to form a bullish 'golden cross'
2. According to a report by the British "Financial Times" on Thursday (September 21), ahead of high-level trade negotiations, the European Union issued a warning to China, requiring Beijing to make "progress" in reducing its trade deficit. The EU's trade deficit with China reached 396 billion euros last year, which the EU's top diplomat in China described as "the highest in human history."
3. On Thursday (September 21), the Federal Reserve’s latest interest rate decision and economic forecast are still being discussed. At the same time, the number of weekly jobless claims at the lowest level since January this year has also caused market concerns. The U.S. dollar index lost its upward momentum and fell slightly.
The U.S. job market remains strong, the U.S. dollar loses momentum, the euro rebounds, the pound falls, the yen rises and falls.
4. On Thursday (September 21), the day after the Federal Reserve announced its decision to raise interest rates and updated its economic outlook, gold fell sharply below the 200-day moving average, silver recovered part of its opening losses and rose further, and crude oil prices rebounded slightly to close to 90 dollar mark.
The Fed's interest rate decision continues to ferment, gold falls below the 200-day moving average, silver regains lost ground, and oil prices approach $90
5. Former U.S. Treasury Secretary Lawrence Henry Summers said that Fed policymakers were too optimistic in their latest economic forecasts, warning that the Fed could be shocked by faster inflation and lower growth.
A series of risks surround you! Former U.S. Treasury Secretary warns: The Fed may be shocked by this big surprise
Market hot spots tracking:
In early Asian trading on Friday (September 22), the U.S. dollar index temporarily lost momentum to attack 106 at 105.39. Gold's challenge fell below the $1,911 mark, and Bitcoin once again faced panic selling before the weekend. The price fell back to $26,500, and short-term traders' positions were all in a state of unrealized losses. U.S. Securities and Exchange Commission Chairman Gary Gensler warned that U.S. President Joe Biden's administration is likely to be shut down at the end of September, and regulatory activities on national debt and stock markets will be severely limited. The number of people filing for unemployment benefits for the first time in the United States fell to 201,000, the lowest level since January.
The United States suddenly issued a heavy warning of "shutdown"! The US dollar loses momentum to attack 106, gold challenges falling below 1911, and Bitcoin encounters panic selling again
Forex market
Euro: EUR/USD fell, closing at 1.0657, down 0.02%. Technically, the initial resistance for the upward movement of the exchange rate is at 1.0680, the further resistance is at 1.0705, and the key resistance is at 1.0737; the initial support for the downward movement of the exchange rate is at 1.0622, the further support is at 1.0591, and the more critical support is at 1.0565.
GBP: GBP/USD fell, closing at 1.2294, down 0.40%. Technically, the initial resistance for the upward movement of the exchange rate is located at 1.2350, further resistance is at 1.2406, and the key resistance is at 1.2466; the initial support for the downward movement of the exchange rate is at 1.2234, further support is at 1.2174, and the more critical support is at 1.2118.
stock market
On Thursday (September 21), the U.S. stock market suffered a broad sell-off as investors' risk appetite was hit by concerns that the Federal Reserve's restrictive monetary policy would last longer than expected. The Dow Jones Industrial Average fell 370.46 points, or 1.08%, to close at 34,070.42 points. The S&P 500 fell 1.64% to 4,330 points. The Nasdaq Composite fell 1.82% to 13,223.98 points.
On Thursday (September 21), European markets closed lower as the central banks of the United Kingdom, Turkey, Sweden, Switzerland and Norway made a series of interest rate decisions. The pan-European Stoxx 600 index closed down 5.99 points, or 1.30%, to 454.67 points; Germany's DAX30 index closed down 209.73 points, or 1.33%, to 15571.86 points; Britain's FTSE 100 index closed down 53.03 points, or 0.69%. It closed at 7678.62 points; France's CAC40 index closed down 116.89 points, or 1.59%, at 7213.90 points; the European Stoxx 50 index closed down 63.50 points, or 1.49%, at 4212.48 points; Spain's IBEX35 index closed down 99.00 points, or 1.03% , reported at 9546.80 points; Italy's FTSE MIB index closed down 520.75 points, or 1.78%, at 28708.55 points. Almost all sectors in the pan-European Stoxx 600 index fell. Travel and leisure stocks were the biggest losers, down 3.2%, followed by mining stocks, down 2.6%.
Commodity market
On Thursday (September 21), the Federal Reserve stated on Wednesday that it may raise interest rates again later this year, which promoted the rebound of the US dollar, and its impact has been seen in global markets. In addition to weighing on U.S. stock futures, a rising dollar also pushed gold prices sharply lower on Thursday. Spot gold closed down 0.54% (or 10.37) to close at $1,919.80 per ounce. COMEX October gold futures closed down 1.40% at $1,921.2 per ounce. COMEX December gold futures closed down 1.40% at $1,939.60 per ounce. COMEX October silver futures closed down 0.61% at $23.476 per ounce. COMEX December silver futures closed down 0.62% at $23.687 per ounce.
On Thursday (September 21), crude oil prices fell back after jumping as supply constraints put pressure on barrel prices. The intraday price of U.S. West Texas Intermediate (WTI) crude oil futures continued to circulate around $90 per barrel. WTI November crude oil futures closed down $0.03/barrel (or 0.03%) to $89.63/barrel. As of press time, Brent crude oil futures closed at $92.16/barrel, a decrease of $0.19/barrel (or 0.21%).
Focus on Friday (September 22):
07:01 UK September Gfk Consumer Confidence Index
07:30 Japan’s core CPI annual rate in August
11:00 Bank of Japan announces interest rate decision
14:00 UK retail sales monthly rate after seasonally adjustment in August
14:30 Bank of Japan Governor Kazuo Ueda holds a press conference
15:15 France’s initial manufacturing PMI value for September
15:30 Initial value of German manufacturing PMI in September
16:00 Eurozone manufacturing PMI initial value in September
16:30 UK manufacturing and services PMI in September
18:00 UK September CBI Industrial Orders Difference
20:30 Canadian retail sales monthly rate in July
20:50 Fed Governor Cook delivers a speech
21:45 US Markit manufacturing PMI initial value in September
21:45 US September Markit service industry PMI preliminary value
01:00 the next day Total number of oil rigs drilled in the United States for the week to September 22
At 01:00 the next day, Fed Daley delivered a speech
At 01:00 the next day, Fed Kashkari gave a speech