Market Update – September 27 – Temporary Optimism?
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<p><strong>Chinese indexes</strong> stabilised after a 2-day decline amid fresh optimism that official measures will be able to boost the recovery. Industrial profits improved for the<strong> first time</strong> in a year and the People’s Bank of China said it would step up policy adjustment and implement monetary policy in a “<strong>precise and forceful”</strong> manner to support the economy. Confidence in China’s recovery has been going up and down for so long now, that investor confidence could take lasting damage.</p>
<p><a href="https://forextraderhub.com/wp-content/uploads/2023/09/2023-09-27_09-50-44.jpg"><img decoding="async" class="aligncenter size-full wp-image-733854" src="https://forextraderhub.com/wp-content/uploads/2023/09/2023-09-27_09-50-44.jpg" alt="" srcset="/wp-content/uploads/2023/09/2023-09-27_09-50-44.jpg 1280w, /wp-content/uploads/2023/09/2023-09-27_09-50-44-300×61.jpg 300w, /wp-content/uploads/2023/09/2023-09-27_09-50-44-1024×209.jpg 1024w, /wp-content/uploads/2023/09/2023-09-27_09-50-44-768×157.jpg 768w, /wp-content/uploads/2023/09/2023-09-27_09-50-44-696×142.jpg 696w, /wp-content/uploads/2023/09/2023-09-27_09-50-44-1068×218.jpg 1068w" /></a></p>
<p>The omnipresent fear of the <strong>FOMC’s higher-for-longer policy stance</strong> (and indeed that of the ECB, BoE, and BoC) remains a major worry and was exacerbated after <strong>JPMorgan’s Dimon</strong> noted the potential for a<span><strong> 7% rate as a worst case scenario.</strong></span> Additionally, the threat of a US government shutdown this weekend and Moody’s warning of the potential negative impact on ratings rattled too and left buyers sidelined. Technicals have played a part as well with key levels in stocks, bonds, and the USD having been broken. The drop in <span><strong>September consumer confidence</strong></span>, manifested the anxieties and added to the selloff.</p>
<ul>
<li><strong>USDIndex</strong> continued to rally and firmed to its 2023 and 10-month high as it benefited from a haven bid, along with the relative outperformance of the US economy and rate differentials.</li>
<li><strong>EURUSD </strong>and <strong>GBPUSD</strong> posted fresh lows at <span><strong>1.0554</strong> <span>and</span> <strong>1.2134</strong><span>.</span></span> The <strong>USDJPY</strong> is steady at <span><strong>149.15</strong></span>.</li>
<li><strong>Stocks – Hang Seng </strong>and <strong>CSI300</strong> rose 0.7% and 0.4% respectively. Futures are mixed across Europe and slightly higher in the US, after Wall Street dragged down to the lowest levels since early June. The <strong>US100</strong> tumbled -1.57% to 13,063.6. News that the <span><strong>FTC was suing Amazon</strong></span> helped knock big tech sharply lower. The <strong>US500</strong> was down -1.47% to 4273 with 90% of the index and all sectors in the red. The <strong>US30</strong> slid -1.14% to 33,618, slumping below its 200-day moving average.</li>
<li><strong>Commodities – Oil</strong><span> rebounded to <span><strong>90.80</strong><span> as API reported</span></span> a fall in inventories in Oklahoma.</span></li>
<li><b>Gold – </b>broke <span><strong>1900</strong></span> and currently settled to <span><strong>1895.50 </strong></span>as haven demand favors the Dollar rather than the precious metal. China jitters have flared up & expectations that central banks are sticking with the “higher for longer” messages have added to pressure on bullion.</li>
</ul>
<p><strong>Today</strong>: US Durable Goods.</p>
<p><a href="https://forextraderhub.com/wp-content/uploads/2023/09/Copy-of-TELEGRAM-MARKET-UPDATE-2-1.png"><img decoding="async" class="aligncenter size-full wp-image-733869" src="https://forextraderhub.com/wp-content/uploads/2023/09/Copy-of-TELEGRAM-MARKET-UPDATE-2-1.png" alt="" srcset="/wp-content/uploads/2023/09/Copy-of-TELEGRAM-MARKET-UPDATE-2-1.png 1640w, /wp-content/uploads/2023/09/Copy-of-TELEGRAM-MARKET-UPDATE-2-1-300×169.png 300w, /wp-content/uploads/2023/09/Copy-of-TELEGRAM-MARKET-UPDATE-2-1-1024×577.png 1024w, /wp-content/uploads/2023/09/Copy-of-TELEGRAM-MARKET-UPDATE-2-1-768×433.png 768w, /wp-content/uploads/2023/09/Copy-of-TELEGRAM-MARKET-UPDATE-2-1-1536×865.png 1536w, /wp-content/uploads/2023/09/Copy-of-TELEGRAM-MARKET-UPDATE-2-1-696×392.png 696w, /wp-content/uploads/2023/09/Copy-of-TELEGRAM-MARKET-UPDATE-2-1-1068×602.png 1068w, /wp-content/uploads/2023/09/Copy-of-TELEGRAM-MARKET-UPDATE-2-1-745×420.png 745w" /></a></p>
<p><strong>Interesting Mover: Gold </strong>broke 1900, with next Support levels at 1885 & 1870.</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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