Market Commentary - September 9, 2021

Posted by Kevin Jock on Sep 9, 2021 10:25:17 AM

Global stocks fell on Wednesday as investors anticipated the unwinding of ECB’s stimulus measures that have prop up markets throughout the pandemic. The S&P 500 index dropped 0.1%, while Nasdaq fell 0.6%. Declines were broad-based, with cyclical sectors such as financials and energy falling alongside technology stocks.

The cautious mood in the US followed declines across Europe as well, with the Europe-wide STOXX 600 index closed down 1.1% for its largest fall in three weeks. DAX suffered its worst day since mid-July, dropping nearly 1.5% ahead of today’s meeting at ECB. FTSE 100 and the CAC 40 ended the session lower by 0.75% and 0.85% respectively.

In term of today’s Asian markets, it declined in general with the HK Hang Seng index, South Korea’s Kospi 200 and Japan’s Topix dropped 2%, 1.8% and 0.7% respectively. In China, markets soured after Fitch mentioned that the Chinese home builder Evergrande, the world’s most indebted property developer, could default on its financial obligations.

Elsewhere, Brent crude rose 1.3% as the oil benchmark pushed higher by US producers struggling to get back to business after Hurricane Ida swept through Guld of Mexico. Gold prices held near two-week lows on today, pressured by a stronger US dollar, which in turn leads to the decline of EURUSD as it approaches the monthly low of around 1.1794. Bitcoin price fluctuated around $46,000 after El Salvador’s incident, as president Bukele steps in to fix the rollout snags through a stream of Twitter messages, providing guidelines to the users.

image_2021_09_09T09_00_41_746Z

Figure 1 (Source: IS Prime) XAUUSD Daily :Gold price seems encountered fierce resistance level at the price of $1835, as it unable to break through this level after many attempts.

Headliner to Review
  • The Bank of Canada (BOC) kept its key interest rate target on hold on Wednesday, at the effective lower bound of 0.25%. It is also maintaining its extraordinary forward guidance on the path for the overnight rate, reinforced and supplemented by the bank’s QE program, which is being maintained at a target pace of $2 billion per week.

Headliner to Watch

  • The Canadian employment change figure is due to release on Friday, with the forecasted figure of 67.2K, much lower than last month’s actual figure of 94K.
  • The US month-to-month PPI figures is expected to increase by 0.6%, as such prices likely to accelerate further in August, but the rate of increase may slow after oil prices trending lower in both July and most of August.

Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice.

Authors:
Antony Tan
Kerry Man

Topics: Market Commentary

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