The Markets Are Concentrated On Inflation, Crude Oil Is Down
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US railroad companies and the unions representing their workers reached a tentative agreement early Thursday to prevent a rail strike in the US. Avoiding a rail strike is good news, but not good enough to give a smile to investors. The markets remain too focused on inflation.
Increases and decreases
The S&P500 closed the session more than 1% lower, as US retail sales and jobless claims – which both hinted that the US economy remains relatively resilient to the Federal Reserve (Fed) rate hikes - didn’t help keeping the Fed hawks at bay.
The US 2-year yield spiked to 3.90%, the mortgage rates in the US topped 6%, the US dollar consolidated a touch below the 110 level, Ethereum lost 10% and gold dived to $1660 per ounce.
US crude took a good 4% dive. But this time, it wasn’t just the recession talk, it was because the Americans rectified a beginner’s mistake that they have made earlier this week, saying that they will refill their strategic oil reserves if prices fall below $80 per barrel.
Waiting For Reports
We will likely close this week on a sour note. Next on the economic calendar are the final European CPI read, which will confirm that inflation spiked to 9.1% in August, and the University of Michigan Consumer Sentiment, which will hopefully not print a significantly positive number, because the Fed hawks got strong enough the week before the Fed decision.
Watch the full episode to find out more!
- 0:00 Intro
- 0:25 US rail strike will likely be avoided!
- 2:08 But sentiment remains sour on strong US data
- 3:57 World Bank points at recession
- 5:04 Crude oil down as Americans understand their mistake
- 6:41 Strong dollar weighs on major peers
- 6:55 Joke of the day
- 7:09 Ethereum down 10% post Merge upgrade
- 7:51 Adobe dives 17% on Figma acquisition
- 8:44 Watch EZ final CPI & UoM Consumer Sentiment today!
Ipek Ozkardeskaya
Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.
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