Mohicans markets：MHM Today’s News

☆At 20:30, the United States will announce the number of initial jobless claims for the week ending September 24. The market currently expects it to record 215,000, compared with the previous value of 213,000.

☆At 21:30, the 2022 FOMC vote committee and St. Louis Fed President Bullard will deliver a speech on the U.S. economic outlook.He has previously said the Fed will have to keep policy rates high for some time, with policy rates likely to peak around 4.5%.

Market Inventory

On Wednesday, spot gold rebounded before the U.S. market, rising nearly $50 from the daily low, and finally closed up 1.91% at $1,659.90 per ounce; spot silver rose with the U.S. dollar and finally closed up 2.74% at $18.88 per ounce. . The U.S. dollar index gave back all its gains and fell below the 113 mark, and finally closed down 1.29% at 112.71; the 10-year U.S. bond yield once exceeded 4% within a day, but plunged sharply before the U.S. market, and finally closed at 3.737%. The 2-year U.S. Treasury yield was close to falling below 4%. 

In terms of crude oil, the two crude oils rebounded sharply. WTI crude oil rebounded in the European market and recovered the $80 mark, and finally closed up 5% at $81.87 per barrel;

Brent crude oil approached the $90 mark, and finally closed up 4.14% at $89.21 a barrel.

The Dow ended a six-day losing streak and closed up 1.88%, the Nasdaq closed up 2.05%, and the S&P 500 closed up 1.97%. Most sectors such as silver stocks, gold stocks, and oil and gas stocks rose. Star technology stocks strengthened. Netflix closed up about 9%, Alibaba closed up about 4%, and Amazon closed up about 3%.

European stocks were mixed. Germany's DAX closed up 0.36% at 12,183.28 points; the UK's FTSE 100 closed up 0.3% at 7,005.39 points; the European Stoxx 50 closed up 0.2% at 3,335.3 points.

Fed News

Chicago Fed President Evans believes that the Fed has now reached a consensus on the issue that policy rates should continue to rise, and it is expected that at some point, the Fed will have to slow down the pace of rate hikes a little. Atlanta Fed President Bostic said the baseline is 75 basis points of rate hikes in November and 50 basis points in December, leaning toward a range of 4.25%-4.5% by the end of the year.

The Fed took in a total of $2.367 trillion from 101 counter parties in its fixed-rate reverse repurchase operations, a record high.

Market Hotspots

The Bank of England offers emergency bond purchases in an attempt to salvage the financial storm caused by the tax cuts                       

U.K. 30-year British bond yields hit the biggest daily drop in 30 years, after the Bank of England announced purchases of long-dated debt

U.S. Treasury yields post biggest one-day drop in 13 years and a half

Dollar records biggest one-day drop in nearly two-and-a-half years

The U.S. prepares to impose financial and energy sanctions on Russia, and the EU is set to launch an eighth round of sanctions

German consumer confidence expected to fall to record low in October, set back by inflation and energy concerns

ECB policymakers see 75 bps rate hike in October, consensus on reaching neutral rate

Geopolitical Situation

Russia expects to annex occupied Ukrainian territory within days                                             

EU vows strong response and protection of energy networks amid suspected sabotage of Nord Stream pipeline                       

Ukraines president Zelensky signs decree to restore fuel excise tax

U.S. announces $1.1 billion worth of military aid to Ukraine

U.S. is close to becoming a participant in conflict

Russia says the US should respond to whether it had threatened Nord Stream

Institutional Market Viewpoint

1. Wells Fargo: Euro weakness is expected to continue

2. HSBC: the pound may face further downside risks against the dollar

3. Commonwealth Bank of Australia: the pound will remain weak in the short term

4. Rabobank: the possibility of the pound against the dollar to touch parity is increasing

5. TD Securities: gold capitulation sell-off risk is growing

6. Goldman Sachs: gold is still in the cracks, rising concerns may boost gold prices

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