Market Update – September 26 – Bears in control!

<p></p>
<p><strong>Asian stock markets sold off</strong>, with Hang Seng and CSI 300 extending yesterday’s slide, as concern about <strong>China’s property sector deepened.</strong> Evergrande Group’s mainland unit said it failed to repay an onshore bond, which added to uncertainty over the future of the developer. Attempts to get restructuring plans back on track are ongoing, but investors are worrying about the risk of a potential liquidation.</p>
<p><strong>European and US futures are also in the red,</strong> as Treasury yields continue to rise. The hawkish, higher for longer stance from the FOMC and most major central banks has put bears in control. Fears over sustained inflationary pressures, largely thanks to the resilient economy and higher oil prices weighed. The advent of supply is adding to the rise in rates too.</p>
<p><strong>Moody’s</strong> also noted that a government <strong>shutdown,</strong> which is possible at the end of the month, would be a “negative” for ratings. Wall Street also reversed opening losses with the bump in risk appetite also hurting Treasuries.</p>
<p><a href="https://forextraderhub.com/wp-content/uploads/2023/09/2023-09-26_09-37-32.jpg"><img decoding="async" class="aligncenter size-full wp-image-733567" src="https://forextraderhub.com/wp-content/uploads/2023/09/2023-09-26_09-37-32.jpg" alt="" srcset="/wp-content/uploads/2023/09/2023-09-26_09-37-32.jpg 1299w, /wp-content/uploads/2023/09/2023-09-26_09-37-32-300×58.jpg 300w, /wp-content/uploads/2023/09/2023-09-26_09-37-32-1024×196.jpg 1024w, /wp-content/uploads/2023/09/2023-09-26_09-37-32-768×147.jpg 768w, /wp-content/uploads/2023/09/2023-09-26_09-37-32-696×133.jpg 696w, /wp-content/uploads/2023/09/2023-09-26_09-37-32-1068×205.jpg 1068w" /></a></p>
<ul>
<li><strong>FX – USDIndex</strong> has cleared the <strong><span>106</span></strong> mark as risk aversion picks u<span>p<span>.</span></span> <strong>EURUSD </strong>and <strong>GBPUSD</strong> both broke below <span><strong>1.06</strong> <span>and</span> <strong>1.22</strong> support levels<span> respectively.</span></span> The <strong>USDJPY</strong> firmed to an intraday high of <strong><span>149.18</span>.</strong></li>
<li><strong>Stocks – JPN225</strong> slipped 1.0% to <strong>32,054, ASX</strong> dipped 0.5% to <strong>7,044.90, Hang Seng</strong> shed 0.9% to 17,576.83, while the <strong>Shanghai Composite</strong> fell 0.2% to <strong>3,109.69. Amazon</strong> rose 1.7% and was the strongest single force pushing up the US500. US500 fell 0.4% as of London open, while US100 futures fell 0.6%.</li>
<li><strong>Commodities – Oil</strong><span> slipped below <span><strong>88.00,</strong></span> with next support level at 86, due to US Dollar strength, which looks to outweigh supply tightness. </span></li>
<li><b>Gold- </b>retested 200-day SMA at <span><strong>1909.</strong></span></li>
</ul>
<p><strong>Today</strong>: BoE Governor Bailey’s meeting of the central bank’s Financial Policy Committee and US CB Consumer Confidence &amp; New Home Sales.</p>
<p><a href="https://forextraderhub.com/wp-content/uploads/2023/09/TELEGRAM-MARKET-UPDATE-15.png"><img decoding="async" class="aligncenter size-full wp-image-733616" src="https://forextraderhub.com/wp-content/uploads/2023/09/TELEGRAM-MARKET-UPDATE-15.png" alt="" srcset="/wp-content/uploads/2023/09/TELEGRAM-MARKET-UPDATE-15.png 1640w, /wp-content/uploads/2023/09/TELEGRAM-MARKET-UPDATE-15-300×169.png 300w, /wp-content/uploads/2023/09/TELEGRAM-MARKET-UPDATE-15-1024×577.png 1024w, /wp-content/uploads/2023/09/TELEGRAM-MARKET-UPDATE-15-768×433.png 768w, /wp-content/uploads/2023/09/TELEGRAM-MARKET-UPDATE-15-1536×865.png 1536w, /wp-content/uploads/2023/09/TELEGRAM-MARKET-UPDATE-15-696×392.png 696w, /wp-content/uploads/2023/09/TELEGRAM-MARKET-UPDATE-15-1068×602.png 1068w, /wp-content/uploads/2023/09/TELEGRAM-MARKET-UPDATE-15-745×420.png 745w" /></a></p>
<p><strong>Interesting Mover: VIX (+5.5%) </strong>extending to 1-month resistance at 18.20.</p>
<p><strong>Click </strong><a href="https://www.hfm.com/en/trading-tools/economic-calendar.html"><strong>here</strong></a><strong> to access our Economic Calendar</strong></p>
<p><strong>Andria Pichidi<br />
</strong></p>
<p><strong>Market Analyst</strong></p>
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