North American News
Stocks recover higher into the close in an up and down day
- Dow and Nasdaq down -3% for the week
The US major indices recovered into the close and are ending the day higher but was a up and down trading session. The gains come after sharp declines yesterday that saw the Dow, S&P, and NASDAQ at its worst trading day since June 2020.
For the trading week, the Dow industrial average is down -3.14%, the S&P is down -2.98% and the NASDAQ is down -3.24%. However, all 3 indices are above their lows from last week.
The final numbers are showing:
- Dow industrial average rose 30.12 points or 0.10% at 31135.08
- S&P index rose 13.34 points or 0.34% at 3946.02
- NASDAQ index rose 86.11 points or 0.74% at 11719.69
- Russell 2000 rose 6.80 points or 0.3% at 1838.46
6 of the 11 sectors of the S&P saw gains while 5 declined:
- energy rose 2.85%
- consumer discretionary rose 1.3%
- utilities rose 0.81%
US August PPI +8.7% y/y vs +8.8% expected
- US August producer price index data
- Prior was +9.8%
- PPI -0.1% m/m vs -0.1% expected
- Prior m/m reading was -0.5%
- Ex-food and energy +7.3% y/y vs +7.1% expected
- Ex-food and energy +0.4% m/m vs +0.3% expected
Commodities
Gold bears meet critical support, eyes on bullish correction
- Gold is bleeding as the US dollar resurges from the lows of the day.
- Bears need to get below the daily support or face demand into key resistance in the day ahead.
Gold is back under pressure, losing some 0.32% after falling from a high of $1,707.15 to a low of $1,696.51 so far. The US dollar is attempting a comeback and is moving up from the lows of the day down at 109.275 to 109.618 so far, as per DXY.
The DXY is an index that measures the greenback vs a basket of currencies and it has been whipsawed over the US inflation data that was released yesterday which sent markets into a state of higher volatility. Gold has responded with two-way price action and continues to be driven on the back of the market’s pricing of the Federal Reserve that meets next week to decide upon its next interest rate hike.
Traders expect 75 basis points when its policy committee meets next week and lower market hopes for a smaller increase. However, there is a one-in-five chance that the Fed will raise rates by a full percentage point, up from zero a day before the inflation report according to FEDWATCH. Inflation in the United States ran at an 8.3% annualized pace in August, ahead of expectations for an 8.0% rise
”Given the persistence of inflation continues to support an aggressive effort by the Fed, we now expect the FOMC to raise the target rate by 75bp at its meeting next week, deliver another 75bp hike in November, and hike a further 50bp in December,” analysts at TD Securities said.
”We also now expect a higher terminal rate range of 4.25-4.50% by year-end. In this context, while prices are certainly weak, precious metals’ price action is still not consistent with their historical performance when hiking cycles enter into a restrictive rates regime. Indeed, gold and silver prices have tended to display a systematic underperformance when markets expect the real level of the Fed funds rate to rise above the neutral rate, as estimated by Laubach-Williams.”
”We expect continued outflows from money managers and ETF holdings to weigh on prices, which will ultimately raise the pressure on a small number of family offices and proprietary trading shops to capitulate on their complacent length in gold.”
US EIA weekly crude oil inventories +2442K vs +833K expected
- Weekly oil data from the US EIA
- Prior was -3326K
- Gasoline -1767K vs -858K expected
- Distillates +4219K vs +600K expected
- Refinery utilization +0.6% vs 0.0% expected
- Implied gasoline demand 8.50m vs 8.73m last week
- SPR draw of 8.414m vs 7.5m prior (8.4m expected)
API data from late yesterday:
- Crude +6040K
- Gasoline -3230K
- Diistillates +1750K
EU News
European equity close: Not many dip buyers
- Closing changes for the main European bourses
Closing changes from the main markets
- Stoxx 600 -0.6%
- UK FTSE 100 -1.4%
- German DAX -1.2%
- French CAC -0.4%
- Spain IBEX +0.1%
- Italy MIB +0.6%
Other News
EU proposes the rumored €180mWh cap on non-gas Fueled power generation and windfall taxes
- This was rumored/reported earlier this week
- Cap of €180mWh would apply to nuclear and renewable
- Windfall tax would recoup 33% of oil, gas, coal and refining companies surplus profits compared to the three years before 2019
- Would apply to fossil fuel companies that have tax obligations in EU countries
- Proposes mandatory target to cut electricity use by 5% during peak periods
- Proposes voluntary target to cut overall monthly electricity use by 10% compared to same period in recent years
Cryptocurrency News
ApeCoin price inches towards mayhem as bears aim to conquer the $5.00 terrain
- ApeCoin price has lost 16% of market value this week.
- APE price shows an uptick of bearish volume amidst the recent selloff.
- Invalidation of the bearish thesis could occur if the bulls can hurdle the $5.30 order block zone.
ApeCoin price could witness a sweep of the lows event if market conditions persist. Still, key levels have been identified to forecast a bullish and bearish scenario.
ApeCoin price has a decision to make
ApeCoin price shows newfound bearish pressure as the bulls have successfully breached the $5 zone. Following the controversial US CPI report, the APE price has lost 16% of its market value. On smaller time frames, the Ethereum-based NFT token tests the 8-day exponential moving average for support while the 21-day simple moving average hovers just below price action at $4.86.