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US stocks closed lower, Dow Jones down 0.35%



At the close of the New York Stock Exchange, the Dow Jones fell 0.35% to a 3-month low, the S&P 500 fell 0.84%, and the NASDAQ Composite fell 1.37%.

Merck & Company Inc was the top performer among the components of the Dow Jones in today's trading, up 2.98 points or 3.53% to close at 87.51. Quotes Johnson & Johnson rose by 2.90 points (1.78%), ending trading at 166.18. Salesforce Inc rose 2.52 points or 1.71% to close at 150.15.

Shares of American Express Company were the leaders of the fall, the price of which fell by 5.68 points (3.82%), ending the session at 143.03. Boeing Co was up 3.20% or 4.58 points to close at 138.71, while Goldman Sachs Group Inc was down 2.43% or 7.79 points to close at 312. .92.

Among the S&P 500 index components gainers today were Eli Lilly and Company, which rose 4.85% to 310.87, Merck & Company Inc, which gained 3.53% to close at 87.51. , as well as shares of Bristol-Myers Squibb Company, which rose 2.63% to end the session at 71.29.

The biggest losers were Caesars Entertainment Corporation, which shed 9.44% to close at 37.62. Shares of Ball Corporation lost 8.66% to end the session at 49.23. FactSet Research Systems Inc dropped 8.29% to 394.75.

Leading gainers among the components of the NASDAQ Composite in today's trading were Spero Therapeutics Inc, which rose 167.74% to hit 2.20, Avenue Therapeutics Inc, which gained 105.90% to close at 0.44, and also shares of Panbela Therapeutics Inc, which rose 46.39% to end the session at 0.35.

Top Ships Inc. was the biggest loser, shedding 44.06% to close at 0.12. Shares of Ecmoho Ltd lost 42.72% and ended the session at 0.10. Quotes of Pintec Technology Holdings Ltd decreased in price by 28.80% to 0.42.

On the New York Stock Exchange, the number of securities that fell in price (2596) exceeded the number of those that closed in positive territory (546), while quotes of 120 shares remained virtually unchanged. On the NASDAQ stock exchange, 3,011 stocks fell, 765 rose, and 257 remained at the previous close.

The CBOE Volatility Index, which is based on S&P 500 options trading, fell 2.29% to 27.35.

Gold futures for December delivery added 0.24%, or 4.00, to $1.00 a troy ounce. In other commodities, WTI crude for November delivery rose 0.54%, or 0.45, to $83.39 a barrel. Brent oil futures for November delivery rose 0.50%, or 0.45, to $90.28 a barrel.

Meanwhile, in the Forex market, the EUR/USD pair remained unchanged 0.04% to 0.98, while USD/JPY fell 1.14% to hit 142.40.

Futures on the USD index rose by 0.65% to 111.07.

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GBP/USD. The pound is on the path of a great crisis. Will there be parity?



How low can the exchange rate fall? Will the Bank of England take measures to support the pound? At the end of last week, bearish positions on the British pound sharply intensified. Traders seem to have tried to resist such a powerful downward movement until the last moment, but it did not work out. Events are developing in such a way that the pound in the future can not only update distant historical lows, but also risks setting a new anti-record. The BoE's decision on the rate and the announcement of the interim budget, to put it mildly, did not impress the markets. The central bank raised the rate by only 50 bps, accumulating a backlog from the Federal Reserve. The new economic plan failed to allay investors' concerns about the approaching recession in the country. The collapsed economic indicators were also another reason for short positions. The GfK consumer confidence indicator plunged to -49 from -41, updating the historical record. The last time such figures could be seen was in 1974. The CBI retail activity indicator fell to -20 in September from 37 in August. Preliminary PMI estimates could not act as a kind of reassurance for the market. The composite index fell to 48.4 from 49.6 due to the deterioration in the service sector, where the corresponding indicator fell to 49.2 from 50.9. At first, the GBP/USD pair fell to the area of 1.1020, which is the low since 1985. Then shorts intensified and the quote easily broke down the 1.0900 mark.



Since the beginning of the year, GBP/USD has lost approximately 20%. Given inflation of 10%, nervousness should be not only among market players, but primarily among the government and the BoE. If officials do step up their efforts to maintain the pound, volatility in the foreign exchange market risks being prohibitive or getting out of control.

What's Wrong with Government Measures?

The pound was mostly brought down by new government measures. The authorities have announced significant tax cuts since 1972 in an attempt to push the country's economic growth to 2.5%.

At least some, but actions and in theory, and even according to the government's plan, it was supposed to support the mood. However, investors have their own vision of the situation and they did not believe that the British authorities, led by Liz Truss, would be able to finance these measures without hindrance.

Radical changes to the tax code imply a reduction in the basic income tax rate from 20p to 19p from April 2023. The highest income tax rate has been reduced from 45p to 40p, while the increase in national insurance contributions this year will be canceled in November.

In addition, the planned increase in corporate tax has been postponed indefinitely. At the same time, Brits buying housing for the first time will be able to see a noticeable weakening of the state fee. The cost of all the announced tax cuts, according to the authorities, is 45 billion pounds.

At the same time, the government's decision to limit electricity bills will cost much more, approximately 130 billion pounds.

In general, this means that the British government will need to borrow more, increasing the supply of gold on the market.

What will Happen to the Pound?

The panic selling of the pound made many think about the future prospects of the British currency. What is it: a temporary turbidity and an excessively strong and completely unreasonable reaction of worried investors, or is the pound really on the path of a great crisis? Will there be parity with the dollar for the first time in history?

Indeed, the pound is now under the strongest pressure, including due to the incessant advance of the dollar. The fall of the pound coincides with the time when there was a significant sell-off on world markets. Even in normal times, this creates obstacles for the national currency of Britain.

Parity with the dollar is considered by analysts as an extreme measure, which is still far from reality. At the same time, new record lows are quite possible.

It is unlikely that government measures will lead to a collapse of the pound or create problems when selling gold coins.

"Given that the economy is flirting with recession, tax cuts supporting demand are not necessarily a bad idea. But this tax cut should be permanent, not temporary," Oxford Economics believes.

The pound is expected to continue to decline to about 1.0500 against the dollar in the short term. Meanwhile, the BoE will have no choice but to raise the size of the rate hike. At the November meeting, the central bank should increase the rate by 75 bps. Thus, the markets will raise the forecast for the maximum bank rate from 3% to 4%.

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US stocks closed lower, Dow Jones down 1.11%



At the close in the New York Stock Exchange, the Dow Jones fell 1.11% to hit a 52-week low, the S&P 500 fell 1.03%, and the NASDAQ Composite fell 0.60%.

Walmart Inc was the top gainer among the components of the Dow Jones index today, up 1.25 points (0.96%) to close at 131.31. Apple Inc rose 0.34 points (0.23%) to close at 150.77. Procter & Gamble Company rose 0.13 points or 0.10% to close at 135.71.

The biggest losers were The Travelers Companies Inc, which shed 4.88 points or 3.14% to end the session at 150.60. Boeing Co was up 2.99% or 3.92 points to close at 127.34, while Chevron Corp was down 2.63% or 3.81 points to close at 140.96. .

Leading gainers among the components of the S&P 500 in today's trading were Wynn Resorts Limited, which rose 11.99% to 66.80, Las Vegas Sands Corp, which gained 11.81% to close at 39.66. as well as Costco Wholesale Corp, which rose 2.98% to end the session at 480.30.

The losers were DISH Network Corporation, which shed 6.12% to close at 14.27. Shares of The AES Corporation shed 5.48% to end the session at 22.96. Quotes of Halliburton Company decreased in price by 5.17% to 23.31.

Leading gainers among the components of the NASDAQ Composite in today's trading were LAVA Therapeutics NV, which rose 97.50% to 4.74, DIRTT Environmental Solutions Ltd, which gained 42.87% to close at 0.45. as well as shares of Panbela Therapeutics Inc, which rose 25.96% to close the session at 0.34.

The biggest losers were Powerbridge Technologies Co Ltd, which shed 68.57% to close at 0.50. Shares of Scienjoy Holding Corp lost 43.77% to end the session at 1.67. Quotes of Snow Lake Resources Ltd fell in price by 40.88% to 1.88.

On the New York Stock Exchange, the number of securities that fell in price (2652) exceeded the number of those that closed in positive territory (536), while quotes of 132 shares remained virtually unchanged. On the NASDAQ stock exchange, 2,592 stocks fell, 1,248 rose, and 275 remained at the previous close.

The CBOE Volatility Index, which is based on S&P 500 options trading, rose 7.82% to 32.26, hitting a new 3-month high.

Gold futures for December delivery lost 1.56%, or 25.90, to hit $1.00 a troy ounce. In other commodities, WTI crude for November delivery fell 2.82%, or 2.22, to $76.52 a barrel. Futures for Brent crude for December delivery fell 2.81%, or 2.39, to $82.64 a barrel.

Meanwhile, in the Forex market, EUR/USD fell 0.84% to hit 0.96, while USD/JPY edged up 0.94% to hit 144.66.

Futures on the USD index rose by 0.98% to 114.07.

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US stock market closed mixed, Dow Jones down 0.43%



At the close of the New York Stock Exchange, the Dow Jones fell 0.43% to hit a 52-week low, the S&P 500 index fell 0.21%, and the NASDAQ Composite index rose 0.25%.

The leading performer among the Dow Jones index components today was Salesforce Inc, which gained 2.57 points or 1.76% to close at 148.89. Quotes Dow Inc rose by 0.40 points (0.92%), ending trading at 43.79. Home Depot Inc rose 0.79% or 2.11 points to close at 268.69.

The losers were shares of McDonald's Corporation, which lost 7.06 points or 2.90% to end the session at 236.70. Procter & Gamble Company was up 2.75% or 3.73 points to close at 131.98 while Coca-Cola Co was down 2.57% or 1.49 points to close at mark 56.38.

Leading gainers among the S&P 500 index components in today's trading were CF Industries Holdings Inc, which rose 6.10% to hit 95.87, Mosaic Company, which gained 4.15% to close at 48.44, and also shares of Royal Caribbean Cruises Ltd, which rose 3.88% to end the session at 45.75.

The biggest losers were Digital Realty Trust Inc, which shed 3.98% to close at 97.73. Shares of Organon & Co shed 3.54% to end the session at 24.26. Quotes of Global Payments Inc decreased in price by 3.39% to 108.02.

Leading gainers among the components of the NASDAQ Composite in today's trading were Avenue Therapeutics Inc, which rose 106.25% to hit 7.26, Scienjoy Holding Corp, which gained 47.90% to close at 2.47, and also shares of X4 Pharmaceuticals Inc, which rose 40.18% to close the session at 1.25.

The drop leaders were NLS Pharmaceutics AG, which shed 25.07% to close at 0.72. Shares of Midatech Pharma PLC ADR lost 20.77% and ended the session at 2.06. Quotes of Fednat Holding Co decreased in price by 18.22% to 0.18.

On the New York Stock Exchange, the number of securities that fell in price (1634) exceeded the number of those that closed in positive territory (1527), while quotes of 136 shares remained virtually unchanged. On the NASDAQ stock exchange, 2048 companies rose in price, 1751 fell, and 295 remained at the level of the previous close.

The CBOE Volatility Index, which is based on S&P 500 options trading, rose 1.05% to 32.60, hitting a new 3-month high.

Gold Futures for December delivery added 0.18%, or 2.95, to $1.00 a troy ounce. In other commodities, WTI crude for November delivery rose 2.29%, or 1.76, to $78.47 a barrel. Futures for Brent crude for December delivery rose 2.35%, or 1.95, to $84.81 a barrel.

Meanwhile, in the Forex market, the EUR/USD pair remained unchanged 0.14% to 0.96, while USD/JPY rose 0.06% to hit 144.84.

Futures on the USD index rose by 0.09% to 114.12.

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USD/JPY: When will Groundhog Day end?



The USD/JPY pair continues to tread in the 144-145 range, in which it has been stuck since the beginning of the week. Consolidation is pretty boring for both bulls and bears, but there is no trigger on the horizon yet.

This year, the Japanese currency has fallen in price relative to its American counterpart by more than 20%. The reason for the weakening of the yen was the strong monetary divergence between the US and Japan.

Last week, the dollar-yen pair set another high-profile record. After the Federal Reserve raised rates again, and the Bank of Japan left the indicator unchanged, the quote jumped to a new 24-year high at 145.90.

The sharp fall of the yen forced the Japanese government to intervene in support of its national currency for the first time since 1998. As a result of the intervention, the USD/JPY pair went into a steep peak. However, the asset did not stay as a loser for long. It only took a couple of days for it to get back on track leading to the main goal for today – level 145.



Since the beginning of this week, the dollar-yen pair has already come close to the cherished mark several times, but each time it rolled back.

According to analysts, the main deterrent for dollar bulls at the moment is the risk of repeated currency intervention.

Given the huge number of warnings from the Japanese authorities, traders still prefer not to get into trouble. However, the situation may change dramatically if a particularly powerful trump card in favor of the dollar appears on the market.

You may ask: isn't it here now? Indeed, the dollar received strong support from the Fed last week. The US central bank not only raised rates, but also made it clear that it intends to tighten its monetary policy in the future.

This week, American politicians have further intensified hawkish rhetoric, which contributed to the explosive growth of the dollar. The greenback has reached a new 20-year high, showing impressive dynamics in almost all directions, but not paired with the yen.

The psychologically important 145 barrier still remains impregnable for the USD/JPY asset. This suggests that the market has already taken into account the further growth of discrepancies in the monetary policy of the Fed and the BOJ.

Now traders need specifics: how big the gap in US and Japanese interest rates can become.

If in the near future American officials again talk about raising the indicator by 100 bps, perhaps this will be the very impetus for the dollar, which will move it from the dead point.

– Of course, the Japanese Ministry of Finance is aware of the current vulnerability of the yen. Probably, the authorities will continue to intimidate traders with interventions to deter speculators, Rabobank analysts warn. – Nevertheless, we are still guided in our 3-month forecast for the USD/JPY pair to the level of 147.

As for the short-term dynamics of the asset, do not expect miracles in the coming days. Most experts believe that the dollar-yen pair will remain in the zone of broad consolidation.

The technical picture for the USD/JPY

200-day exponential moving average at 141.20 scales higher. This indicates that the long-term trend is still stable.

At the same time, the relative strength index (RSI) fluctuates in the range of 40.00-60.00, which indicates that the movement continues within the current range.

For a decisive bearish reversal, the asset needs to fall below the previous week's low at around 140.35.

Dollar bulls may push the pair higher after overcoming the previous week's high at 145.90.

This may lead the quote to the August 1998 high at 147.67. And its breakthrough will send the dollar even further upward – to psychological resistance in the area of 150.00.

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US stock market closed lower, Dow Jones down 1.54%



At the close in the New York Stock Exchange, the Dow Jones fell 1.54%, the S&P 500 fell 2.11% and the NASDAQ Composite fell 2.84%.

The leading gainers among the components of the Dow Jones index today were The Travelers Companies Inc, which gained 1.76 points (1.15%) to close at 154.68. Visa Inc Class A rose 0.88 points or 0.49% to close at 180.06. Merck & Company Inc shed 0.14 points or 0.16% to close at 86.64.

The losers were Boeing Co shares, which lost 8.11 points or 6.08% to end the session at 125.33. Walgreens Boots Alliance Inc was up 4.97% or 1.65 points to close at 31.55 while Apple Inc was down 4.91% or 7.36 points to end at 142. .48.

Among the S&P 500 index components gainers in today's trading were Everest Re Group Ltd, which rose 3.07% to 267.41, STERIS plc, which gained 2.76% to close at 167.29, and also shares of W. R. Berkley Corp, which rose 2.73% to end the session at 65.18.

The biggest losers were CarMax Inc, which shed 24.60% to close at 65.16. Shares of SolarEdge Technologies Inc lost 8.27% to end the session at 235.56. Quotes of Royal Caribbean Cruises Ltd decreased in price by 7.91% to 43.64.

Leading gainers among the components of the NASDAQ Composite in today's trading were Senti Biosciences Inc, which rose 50.71% to hit 2.11, Avalon Globocare Corp, which gained 25.85% to close at 0.70, and also shares of TuanChe ADR, which rose 25.31% to close the session at 3.07.

The biggest losers were Atlis Motor Vehicles Inc, which shed 54.82% to close at 33.95. Shares of Lion Group Holding Ltd lost 49.25% and ended the session at 1.01. Quotes of Twin Vee Powercats Co decreased in price by 29.01% to 2.52.

On the New York Stock Exchange, the number of securities that fell in price (2631) exceeded the number of those that closed in positive territory (530), while quotes of 112 shares remained virtually unchanged. On the NASDAQ stock exchange, 2,842 stocks fell, 956 rose, and 224 remained at the previous close.

The CBOE Volatility Index, which is based on S&P 500 options trading, rose 5.50% to 31.84.

Gold futures for December delivery lost 0.07%, or 1.20, to hit $1.00 a troy ounce. In other commodities, WTI crude for November delivery fell 0.55%, or 0.45, to $81.70 a barrel. Futures for Brent crude for December delivery fell 0.55%, or 0.48, to $87.57 a barrel.

Meanwhile, in the Forex market, EUR/USD rose 0.70% to hit 0.98, while USD/JPY edged up 0.21% to hit 144.46.

Futures on the USD index fell 0.36% to 112.11.

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US stocks closed lower, Dow Jones down 1.71%



At the close of the New York Stock Exchange, the Dow Jones fell 1.71% to hit a 52-week low, the S&P 500 fell 1.51% and the NASDAQ Composite fell 1.51%.

Shares of UnitedHealth Group Incorporated were among the leaders of gains among the components of the Dow Jones index today, which lost 3.79 points (0.74%) to close at 505.04. Walgreens Boots Alliance Inc fell 0.15 points or 0.48% to close at 31.40. Dow Inc shed 0.23 points or 0.52% to close at 43.93.

The drop leaders were Nike Inc shares, which lost 12.21 points or 12.81% to end the session at 83.12. Boeing Co was up 3.39% or 4.25 points to close at 121.08, while Walt Disney Company was down 3.20% or 3.12 points to close at 94. 33.

Leading gainers among the S&P 500 index components in today's trading were Charles River Laboratories, which rose 3.57% to hit 196.80, Weyerhaeuser Company, which gained 2.92% to close at 28.56, and shares of Twitter Inc, which rose 2.74% to end the session at 43.91.

The losers were shares of Carnival Corporation, which fell 23.31% to close at 7.03. Shares of Norwegian Cruise Line Holdings Ltd lost 18.11% to end the session at 11.35. Quotes of Royal Caribbean Cruises Ltd decreased in price by 13.14% to 37.91.

Leading gainers among the components of the NASDAQ Composite in today's trading were FingerMotion Inc, which rose 82.16% to hit 3.37, SAITECH Global Corp, which gained 43.36% to close at 3.24, and shares of Avenue Therapeutics Inc, which rose 39.03% to end the session at 10.08.

The biggest losers were Atlis Motor Vehicles Inc, which shed 39.91% to close at 20.40. Shares of Aterian Inc lost 37.06% and ended the session at 1.24. Quotes of Edesa Biotech Inc decreased in price by 34.66% to 0.92.

On the New York Stock Exchange, the number of securities that fell in price (1,758) exceeded the number of those that closed in positive territory (1,354), while quotations of 117 shares remained virtually unchanged. On the NASDAQ stock exchange, 2,139 companies fell in price, 1,583 rose, and 228 remained at the level of the previous close.

The CBOE Volatility Index, which is based on S&P 500 options trading, fell 0.69% to 31.62.

Gold futures for December delivery added 0.11%, or 1.80, to $1.00 a troy ounce. In other commodities, WTI crude for November delivery fell 1.87%, or 1.52, to $79.71 a barrel. Futures for Brent crude for December delivery fell 2.13%, or 1.86, to $85.32 a barrel.

Meanwhile, in the Forex market, the EUR/USD pair remained unchanged 0.08% to 0.98, while USD/JPY advanced 0.23% to hit 144.77.

Futures on the USD index fell 0.09% to 112.10.

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USD/JPY: May the force be with you!



Yesterday, bulls again pushed the USD/JPY pair above the key 145 mark, but failed to gain a foothold there. The yen turned out to be a tough nut to crack, which is still too tough for the dollar bulls.

For a penny of ammunition, for a fragment of ambition

Trampling the USD/JPY pair, which lasted all last week, unexpectedly gave way to a decisive upward movement on Monday morning.

Lacking a new fundamental catalyst, the dollar miraculously managed to hit the 145 peak it tested in September again.

Recall that the last time this barrier was captured turned out to be a disaster for the greenback. In response to the strong fall of the yen, the Japanese authorities carried out the first intervention in 24 years to support their national currency.

Having touched a potentially dangerous line, this time the greenback was more cautious and without intervening in the market, it bounced back as if scalded.

This served as yet another confirmation that USD/JPY bulls are still wary of intervention and do not want to draw fire on themselves.

Of course, the dollar still has a strong amulet in its pocket that will almost save it from a steep plunge. We are talking about the growing monetary divergence between the US and Japan.

But the market is well aware that this is no longer enough for the USD to rise. With the Japanese government continuing to threaten to intervene again, the dollar needs a big boost in the form of strong economic data.

A strong US economy will definitely allow the Federal Reserve to satisfy all its hawkish ambitions, and weak macroeconomic statistics, on the contrary, will prevent this.

Recall that at the September meeting, the US central bank raised interest rates by 75 bps and reaffirmed its willingness to raise the rate more aggressively if inflation continues to be high.

Nevertheless, many analysts believe that the 75 bps step is the ceiling for the Fed. The US central bank is unlikely to decide on anything more, given the uneven economic data.

This opinion was supported by the latest index of business activity in the US manufacturing sector. The ISM reported a reading of 50.9 in September, lower than its forecast of 52.2.

After the release of pessimistic statistics, the yield on 10-year US bonds fell by 14 basis points to 3.66%, and the dollar significantly fell.



Flat may drag on

Today's portion of US economic data is also unlikely to please the USD/JPY bulls. Tuesday's key report will be the release of the index of business activity in the services sector from ISM.

Economists forecast a decline in September to 56 compared to the previous value of 56.9.

The data on the index of new orders for the last month may also turn out to be weak. The indicator is expected to fall to 58.9 against 61.8 recorded in August.

Preliminary estimates are putting significant pressure on the dollar-yen this morning as it struggles to break out of the consolidation phase to try again to break through the defenses at the psychologically important 145 mark.

At the time of release, the quote jumped almost 0.2% and traded around 144.80.

The trigger for the asset was a dovish statement by Japanese Prime Minister Fumio Kishida. The day before, the official said that the government will continue to stimulate the economy, while trying to make the most of the weak yen.

The geopolitical factor also provided significant support to the dollar - the escalation of tension between Japan and North Korea.

At the beginning of the day, it was reported that Pyongyang, which had already tested an unprecedented number of missiles this year, had fired another short-range ballistic projectile.

This time, the target of the North Korean military appeared to be the Hokkaido area, which is considered the second largest Japanese island.

In response to the missile launch over Japan, the Hokkaido authorities issued an air raid alert and urged the people of the region to take shelter.

Meanwhile, Japanese Defense Minister Yasukazu Hamada has signaled that Tokyo is considering all options for strengthening its defenses, including a counterattack.

If the conflict between the countries continues to escalate, the Japanese yen may weaken even more. In this case, bulls on the USD/JPY pair will finally have a real chance to settle above the 145 level.

However, we recommend that traders do not force things yet and be patient, especially since most forecasts for the USD/JPY pair point to further movement in the flat.

Most likely, in the coming days, the dollar and the yen will continue to pull the price rope in the 144-145 range.

Technical picture for the USD/JPY pair

The short-term trend is neutral, but has a tendency to the downside. As the quote fell below the 20-, 50- and 100-EMAs yesterday, this could spell further losses.

If the bears manage to take the asset below 144, this will open a fast route to 143.90.

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European stocks decline after previous sharp rise

On Wednesday, key European stock indices declined dramatically amid the release of fresh statistics on the EU countries. At the same time, stock indexes have been actively rising over the last three sessions and closed Tuesday's trading with a record six-month gain.



By the time of writing, the STOXX Europe 600 index of Europe's leading companies had dropped by 0.9% to 399.40 points.

Meanwhile, the French CAC 40 fell by 0.73%, the German DAX lost 0.79%, and the British FTSE 100 declined by 1.15%.

Top gainers and losers

The stock price of Britain's largest grocery retailer Tesco Plc rose 2.5% despite a 2.8-fold decline in pre-tax profits in the January-June 2023 fiscal year. In addition, the day before, the company worsened its full-year outlook due to changing consumer behavior and continued uncertainty in the trading environment amid record inflation.

The Finnish airline Finnair rose 1.2%. Earlier the company reported that it carried 890,500 passengers last month, 1.1% more than in August. At the same time, in September 2021, the number of Finnair passengers was only 298.2 thousand.

The market capitalization of the Danish manufacturer of audio systems and other electronics Bang & Olufsen A/S fell by 2.6%. The company's revenue fell by 8.2% in the first fiscal quarter.

Share price of the Swedish Avanza Bank Holding dropped by 6.4%.

The stock price of French auto parts supplier Faurecia SE dropped 6.2%.

Swedish cloud technology provider Sinch AB soared by 9.7%.

Meanwhile, the market capitalization of the Swedish airline SAS AB is steadily increasing. Earlier, the company's management announced about the changes in the contracts with 10 lessors providing 36 aircraft. According to the preliminary expectations of the SAS AB management, it will help to save about $700 million a year by 2026. Market sentiment

The focus of European investors on Wednesday is fresh statistics on the region. So, according to the final estimation of experts, in September the business activity composite index (PMI) in industry and services of 19 Eurozone countries was 48.1 points down from 48.9 points in August. Meanwhile, earlier the market forecasted the decrease of the index down to 48.2 points only.

The final September PMI was the lowest in two years and eight months. Traditionally the value of business activity composite index in industry and services above 50 points indicates an increase in economic activity, below its decline.

In addition, on Wednesday morning S&P Global reported that the euro region's services purchasing managers' index was 48.8 points for the month, compared to August's 49.8 points. The September total was the lowest since February 2021. At the same time analysts predicted a less noticeable decrease in the index - down to 48.9 points. By the way, the fall of purchasing managers indicator in the services sector below 50 points traditionally indicates a decrease in business activity in the sector.

Meanwhile, in Italy PMI in the service sector fell to 48.8 points in September from 50.5 points in August, in Germany - to 45 points from 47.7 points. Meanwhile, in France the index rose last month to 52.9 points from August's 51.2 points.

Germany's foreign trade surplus decreased to 1.2 billion euros in August from 13.7 billion euros registered a year before and 3.4 billion euros in July. This tangible reduction in the country's trade surplus was a striking signal of a slowdown in external demand for goods produced by Germany's key manufacturing sector.

The volume of German exports in September, adjusted for calendar and seasonal factors, rose by 1.6% (EUR 133.1 billion) compared to August.

Meanwhile, imports rose 3.4% to €131.9 billion. Meanwhile, industrial production in France soared 2.4% in August compared to July's drop of 1.6%. At the same time the August figure was the highest since January 2021.

Previous trading results

On Tuesday, European stock indices closed in the green zone, gaining within 4%.

Thus, the composite indicator of Europe's leading companies STOXX Europe 600 rose by 2.01% to 403.03 points. By the way, the index exceeded 400 points for the first time since September 22.

The French CAC 40 advanced by 4.24%, the German DAX gained 3.78% and the British FTSE 100 added 2.57%.

The value of shares of the German automobile concern Volkswagen rose by more than 1%. The day before, the head of Volkswagen Oliver Blumet told local media that he plans to lead all subsidiaries to an IPO after the success of the initial public offering of Porsche.

Quotes of the Swiss banking group Credit Suisse Group AG soared by 8.9%, recovering from a 9% plunge the day before. The key pressure factor for the shares of Credit Suisse on Monday was the announcement of the bank's management that it is considering cutting 1,000 jobs over the next few years as part of a new anti-crisis program. The business reorganization plan will be unveiled at the end of October.

The market capitalization of the British insurance company Legal & General Group rose by 5.9% on the report of further support for pension fund clients affected by the sharp rise in interest rates.

The share price of British bakery chain Greggs PLC strengthened 10% on total sales, which rose 14.6% year-over-year during the past quarter.

Swiss vacuum equipment maker VAT Group AG gained 6.9 percent.

Quotes of the French IT company Atos SE rose by 6.8%.

The market capitalization of Made.Com, an online furniture retailer, soared more than 20% on news that its management had begun negotiations with "a number of interested parties" about selling the company.

The share price of Swiss chemical group Sika AG soared 6% on the back of an improvement in its revenue forecast for 2022.

The value of securities of Spanish banks Santander, BBVA and Caixabank rose by more than 7%.

Quotes of the British marketing company S4 Capital increased by 10%.

Market capitalization of Norwegian fish company SalMar ASA dropped by 10.3%.

The main factor of growth for the European stock exchanges on Tuesday was a strong outcome of the last trading session on the U.S. stock market. Thus, The Dow Jones Industrial Average gained 2.7% in the first trading session of the fourth quarter, reaching a February high. Meanwhile, the S&P 500 Index gained 2.59% and the NASDAQ Composite gained 2.27%.

In addition, Asian indices were up significantly the day before, as the Hong Kong stock exchange opened after a holiday.

Experts attribute the surge of optimism in the European stock markets the previous day to the weakening of investors' concerns over the further aggressive monetary policy of world central banks. The high recession risks for the global economy, analysts say, may force the regulators to follow a softer course.

According to the statistics published on Monday, the index of business activity in the manufacturing sector in the United States in September fell to its lowest level of May 2020. This state of affairs was perceived by investors as confirmation that monetary tightening by the Federal Reserve is beginning to suppress economic activity.

Meanwhile, the ISM Manufacturing index fell to 50.9 points last month from August's 52.8 points, according to data from the Institute for Supply Management (ISM). At the same time, the market on average expected the index to fall only to 52.2 points.

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US stocks closed lower, Dow Jones down 0.14%



At the close of the New York Stock Exchange, the Dow Jones fell 0.14%, the S&P 500 fell 0.20%, and the NASDAQ Composite fell 0.25%.

The leading performer among the components of the Dow Jones index today was Nike Inc, which gained 2.46 points or 2.78% to close at 91.10. Visa Inc Class A rose 2.02 points or 1.09% to close at 187.67. UnitedHealth Group Incorporated rose 3.90 points or 0.75% to close at 527.07.

The biggest losers were Goldman Sachs Group Inc, which shed 5.87 points or 1.86% to end the session at 309.00. Shares of JPMorgan Chase & Co rose 1.38 points (1.23%) to close at 110.39, while Dow Inc shed 0.56 points (1.20%) to close at 46 .06.

Leading gainers among the S&P 500 components in today's trading were Illumina Inc, which rose 6.56% to hit 218.52, Schlumberger NV, which gained 6.26% to close at 41.57, and Gap Inc, which rose 5.19% to end the session at 9.72.

The biggest losers were Lumen Technologies Inc, which shed 9.45% to close at 7.28. Shares of Enphase Energy Inc shed 9.25% to end the session at 261.60. Quotes Vornado Realty Trust fell in price by 6.38% to 22.47.

The leading gainers among the components of the NASDAQ Composite in today's trading were Chardan Nextech Acquisition 2 Corp, which rose 102.63% to hit 21.54, Nauticus Robotics Inc, which gained 96.27% to close at 6.32. , as well as shares of Pineapple Holdings Inc, which rose 93.01% to end the session at 2.76.

The biggest losers were Bit Brother Ltd, which shed 42.97% to close at 0.18. Shares of Avenue Therapeutics Inc shed 41.59% to end the session at 8.47. Quotes Scienjoy Holding Corp fell in price by 36.99% to 1.38.

On the New York Stock Exchange, the number of securities that fell in price (2102) exceeded the number of those that closed in positive territory (991), while quotes of 107 shares remained virtually unchanged. On the NASDAQ stock exchange, 2,313 companies fell in price, 1,443 rose, and 198 remained at the level of the previous close.

The CBOE Volatility Index, which is based on S&P 500 options trading, fell 1.79% to 28.55.

Gold futures for December delivery shed 0.28%, or 4.90, to hit $1.00 a troy ounce. In other commodities, WTI crude for November delivery rose 1.76%, or 1.52, to $88.04 a barrel. Futures for Brent crude for December delivery rose 2.07%, or 1.90, to $93.70 a barrel.

Meanwhile, in the Forex market, EUR/USD fell 0.96% to hit 0.99, while USD/JPY edged up 0.35% to hit 144.60.

Futures on the USD index rose 1.00% to 111.08.

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Forex Analysis & Reviews: Forecast for GBP/USD on October 10, 2022

On Friday, the British pound opened and closed below the technical level of 1.1170. Now the 1.0828 target is available. The signal line of the Marlin Oscillator also looks fixed below the zero line, in the downward trend zone. Consolidation under 1.0828 will open the second target at 1.0535.



A factor that could postpone the pound's decline is tomorrow's employment data in the UK, which, with the expected maintenance of the unemployment rate at 3.6%, may show an improvement in the employment structure, including wage growth.



The price reached the MACD line and stayed there on the four-hour timescale. The technical price level (1.1170) is pressing on the price from above, so the lateral price movement is unlikely to be long. With the departure of the quote under Friday's low at 1.1055, the movement to 1.0828 will begin.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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The pound does not hold back despair amid a strong dollar and sad forecasts



An important report on the labor market in the United States turned out to be quite strong, because experts' expectations of a weekly loss of the pound against the dollar and euro were being fully realized on Friday.

By the end of the trading day on Friday, the GBP/USD pair was trading at around 1.1103, declining in value by 0.51% under considerable pressure from various factors.

There are no important events in the domestic economic calendar of the UK yet that can give sterling another strong support. Events such as the Bank of England's next interest rate decision and the announcement of the government's budget plan will hit investors only in November. Therefore, the pound's movements on Friday and probably for some time to come will depend entirely on the subtle moods of investors.

According to the released data, the unemployment rate in the United States fell from 3.7% in August to 3.5% in September, and job growth was slightly higher than expected. And this is despite all of the Federal Reserve's efforts to slow down demand. The number of vacancies at the end of last month increased by 263,000, although most analysts predicted an increase of 250,000.

Apparently, the labor market in the world's largest economy is still tense, which means that the Fed has not had any good reasons to move away from its policy of a sharp rate hike. Although many experts fear that such a decisive position of the Fed will not just "cool" the country's economy, but also plunge the US into a deep recession. Nevertheless, the probability that in November the US central bank will implement another rate hike by 0.75 percentage points is all 83%.

Amid all these expectations, the pound found no reason to hold positions and was noticeably weakening against major world currencies. Not having had time to really recover from the extreme volatility caused by the mini-budget of Kwasi Kwarteng, sterling continues to sink under the dominance of the dollar.

The dollar index, which tracks its exchange rate against a basket of six key currencies, was almost invariably trading at 112.34 by 16:00 London time.

In addition to the strong dollar, sterling is under considerable pressure due to data that showed a clear slowdown in the UK economy.

The pound also had to face the first warning from National Grid. The company warns that in the coming winter it will most likely have to introduce rolling power outages in the UK. If Russian gas supplies to the country do not resume, and the temperature begins to fall below the usual level, then the threat from National Grid will become a terrible reality for the United Kingdom.

In addition, the international rating agency Fitch has changed the outlook for the UK's long-term rating to the status of "negative", although the country previously had the status of "stable". Actually, it's not surprising, given the rather risky plans of the government to reduce taxes. It is already obvious that such a plan of the authorities will lead to an increase in public debt. At the same time, the rating itself was confirmed at the "AA" level.

According to experts at Fitch, in the absence of compensating measures, the UK government budget deficit will amount to 7.8% of GDP by the end of this year. And next year this deficit will grow to 8.8%. At the same time, the average budget deficit for countries with an AA rating is about 2% of GDP.

It is expected that inflation in the UK at the end of 2022 will be 8.9%, and then will gradually decline and by the end of 2024 will reach the level of 3.5%. But even in this case, the inflation rate will be higher than the target of 2%.

Earlier this week, S&P Global Ratings also changed the outlook for the UK's long-term rating to the status of "negative", thereby confirming the country's rating at the level of "AA".

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European stock market falls after the collapse of Asian stock exchanges

On Monday, the leading stock indicators of Western Europe show a decline against the background of the negative dynamics of stock exchanges in the Asia-Pacific region. The general pessimism on the world markets was also provoked by investors' concern about further tightening of the monetary policy of the US Federal Reserve in the context of permanently rising inflation. In addition, the tense situation in Ukraine has returned to the agenda.



Thus, at the time of writing, the composite index of the leading companies in Europe STOXX Europe 600 sank by 0.68% - to 389.21 points, reaching a weekly low.

Meanwhile, the French CAC 40 shed 0.53%, the German DAX rose a symbolic 0.05% and the UK FTSE 100 shed 0.45%.

Rising and falling leaders

The value of securities of the French oil and gas company TotalEnergies SE sank by 1.5%. On the eve of the company's management proposed to organize annual negotiations on employee salaries with trade unions in France ahead of the scheduled date, provided that strikes at refineries are completed

The quotes of the British online retailer THG PLC fell by 7.8%.

The market capitalization of the German energy company Uniper SE decreased by 7.5%.

The share price of the Austrian manufacturer of sensors, semiconductor components and lighting equipment ams-OSRAM AG fell by 6.7%.

The value of the securities of the French automotive corporation Renault SA sank by 3.1% after the company's management confirmed that it was negotiating an alliance with Japanese Nissan about future investments in Renault's new electric vehicle business.

Quotes of the French bank Societe Generale SA rose by 0.8% on the news that the company's chief operating officer, Gall Olivier, will leave his post at the end of 2022 due to management reshuffles.

Market sentiment

The focus of attention of participants in the European stock market on Monday is concerns about the consequences of rocket attacks in Ukraine over the weekend. In addition, investors continue to worry about the decisive steps of the world's central banks in the field of monetary policy.

So, this morning it became known that the Bank of England will increase the maximum volume of daily auctions for the redemption of government bonds under the temporary program. The British central bank announced the start of the program on September 28.

At the same time, the British central bank plans to fully complete the repurchase of government securities on Friday, October 14. Since the launch of the program, the BoE has held 8 auctions. In total, the central bank bought bonds for $ 5.5 billion, although it had previously stated that it was ready to buy securities for 40 billion pounds.

Last Friday, a stronger-than-expected labor market report was published in the United States. As a result, the September figures from the US Department of Labor increased investors' concern that the Fed will continue to increase the interest rate in an attempt to cope with record inflation.

On Monday, world media reported that Russian President Vladimir Putin plans to meet with representatives of the Security Council after the attack on a major bridge between Russia and Crimea.

Following the results of Monday's trading, the stock exchanges of the Asia-Pacific region collapsed sharply. At the same time, trading volumes were insignificant due to the holidays in Japan and South Korea. Thus, the Shanghai Shenzhen CSI 300 stock indicator sank by 2.21%, and the Shanghai Composite lost 1.66%.

The main factor of pressure on the Asia-Pacific exchanges on Monday was the securities of chip manufacturers. Thus, the quotes of Anji Microelectronics Tech and Chengdu Xuguang Electronics companies fell by 20% and 10%, respectively, after the White House introduced export control measures. Under the new rules, Chinese companies will no longer have access to some semiconductor materials produced on United States equipment.

Such a decisive step by the American authorities, experts suggest, could provoke a tangible deterioration in trade relations between the United States and China and have serious economic consequences if the PRC takes retaliatory measures.

Another factor of pressure on Asian stock markets was the release of fresh data that by the end of September, the country's services sector declined amid permanent disruptions related to the consequences of the coronavirus pandemic.

This week, European traders will be waiting for the publication of statistical data on consumer prices in the United States. According to preliminary forecasts of experts, by the end of September, annual inflation in America slowed to 8.1% from August's 8.3%.

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Apocalypse today: the yen has collapsed again



On Wednesday morning, the Japanese currency was covered by a strong tsunami caused by the USD. Paired with the dollar, the yen crossed the red line at 145.90 and collapsed to a new 24-year low. The dollar has dispersed

Today's culminating event in the foreign exchange market should be the release of the minutes of the September FOMC meeting.

Recall that last month, as part of the current tightening cycle, the US central bank raised the interest rate by 75 bps for the third consecutive time and signaled the continuation of an aggressive course in order to curb inflation faster.

Now traders hope that the Federal Reserve's minutes will shed light on the central bank's future plans regarding rates. If the report turns out to be more hawkish, it will strengthen expectations for another increase in the indicator by 75 bps.

This development is an excellent driver for the yield of 10-year US government bonds. Ahead of the release of the FOMC minutes, the indicator soared to a 14-year high at 4.006%.

The jump in yields contributed to the dollar's growth in all directions. At the start of Wednesday, the DXY index rose by 0.16% and tested a 2-week high at 113.54.

At the same time, the greenback showed the best dynamics against the yen, which is absolutely logical. Among all the currencies of the Group of 10, the JPY is particularly sensitive to the growth of long-term US bond yields, since the same Japanese indicator is still near zero.

The growing monetary divergence of Japan and the United States has led to the fact that this year the yen has sunk against the dollar by more than 20%. And this morning, the yen set another anti-record.

The USD/JPY pair jumped by more than 0.3% and touched the level of 146.35. The last time the quote was traded at this level was in August 1998.



Is the intervention close?

Of course, the fact that dollar bulls crossed the red line again further increased the risk of repeated currency intervention by the Japanese authorities.

Recall that the Japanese government intervened in the market for the first time in 24 years three weeks ago, when the USD/JPY pair reached the level of 145.90.

Now, when the quote turned out to be much higher than this level, many traders are afraid of a repeat of the September scenario in the near future.

However, this time Japanese politicians will most likely not focus on any particular red line.

At this stage, the more important indicator will be the rate of change in the exchange rate. This was announced this morning by Japanese Finance Minister Shunichi Suzuki.

"If the yen falls rapidly, it will force the Japanese government to push the red button again," Commonwealth Bank of Australia strategist Joseph Capurso shared his opinion.

Meanwhile, many analysts warn that in the short term, the dollar's growth may accelerate significantly on all fronts, including against the yen.

Today's FOMC minutes is far from the only obvious driver for the dollar. The real rocket fuel for the USD may be tomorrow's release of statistics on inflation in the United States for September.

If the market sees that consumer price growth is still steady, it is likely to reignite a wave of speculation about an even sharper rate hike in America.

In this case, the dollar may demonstrate another parabolic growth. Then Japan will simply have no other choice but to re-intervene.

The yen is doomed anyway

According to Kapurso, the Japanese government will intervene in the market by the end of this week. However, as in September, the effect of the intervention will be short-lived.

Any fluctuations caused by the intervention of the USD/JPY pair will stop within a few weeks, the analyst is certain.

The quote will be able to recover fairly quickly, since the dollar now has very strong support: the Fed's November meeting is ahead, which means the next round of rate hikes.

The asset has excellent growth potential in the longer term. Even if in the future the Fed starts to slow down the pace of tightening its monetary rate a bit, the Bank of Japan policy will still remain ultra-soft. This should support the US currency.

We expect that the dollar will remain strong at least until next spring, and we maintain our 3-month forecast for the USD/JPY pair at 147.00, Rabobank analysts said.

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US stocks closed lower, Dow Jones down 0.10%



At the close of the New York Stock Exchange, the Dow Jones was down 0.10%, the S&P 500 was down 0.33% and the NASDAQ Composite was down 0.09%.

The leading performer among the components of the Dow Jones index today was JPMorgan Chase & Co, which gained 1.65 points (1.62%) to close at 103.61. Quotes of Coca-Cola Co rose by 0.66 points (1.21%), closing trading at 55.14. Intel Corporation rose 0.29 points or 1.16% to close at 25.33.

The biggest losers were Walgreens Boots Alliance Inc, which shed 0.67 points or 2.05% to end the session at 31.94. Walmart Inc was up 1.13% or 1.50 points to close at 131.17, while Boeing Co was down 0.87% or 1.15 points to close at 130.42..

Leading gainers among the S&P 500 index components in today's trading were Royal Caribbean Cruises Ltd, which rose 11.48% to 45.36, Norwegian Cruise Line Holdings Ltd, which gained 11.61% to close at 12. 98, as well as shares of Carnival Corporation, which rose 9.79% to close the session at 7.29.

The biggest losers were Albemarle Corp, which shed 7.89% to close at 251.45. Shares of T. Rowe Price Group Inc lost 5.14% to end the session at 98.07. Quotes of Entergy Corporation decreased in price by 4.52% to 96.58.

Leading gainers among the components of the NASDAQ Composite in today's trading were Pintec Technology Holdings Ltd, which rose 191.16% to hit 0.91, Agrify Corp, which gained 88.02% to close at 0.95, and also shares of 9F Inc, which rose 83.42% to close the session at 0.35.

The biggest losers were Fednat Holding Co, which shed 33.87% to close at 0.22. Shares of T2 Biosystms Inc lost 30.00% and ended the session at 0.06. Kinnate Biopharma Inc lost 26.65% to 8.12.

On the New York Stock Exchange, the number of securities that fell in price (1818) exceeded the number of those that closed in positive territory (1274), while quotes of 132 shares remained virtually unchanged. On the NASDAQ stock exchange, 1,902 stocks fell, 1,820 rose, and 278 remained at the previous close.

The CBOE Volatility Index, which is based on S&P 500 options trading, fell 0.18% to 33.57.

Gold futures for December delivery shed 0.33%, or 5.50, to hit $1.00 a troy ounce. In other commodities, WTI crude for November delivery fell 2.70%, or 2.41, to $86.94 a barrel. Futures for Brent crude for December delivery fell 2.13%, or 2.01, to $92.28 a barrel.

Meanwhile, in the forex market, the EUR/USD pair remained unchanged 0.03% to 0.97, while USD/JPY edged up 0.70% to hit 146.88.

Futures on the USD index rose 0.06% to 113.19.

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USD/JPY: simply the best



Yesterday, the foreign exchange market experienced a strong storm. At first, the dollar took off like a rocket in all directions, and then it also sharply sprung back. But it still looks good against the yen.

The bouncing dollar

On Wednesday, the US currency showed another parabolic growth against all its major competitors. The springboard for the greenback was the shocking data on inflation in the United States.

Statistics for September showed that consumer prices in America rose more than expected. On a monthly basis, the indicator rose by 0.4% against the forecast of 0.2%.

As for the annual dynamics, inflation also exceeded the preliminary estimate of economists and amounted to 8.2%. This is only 0.1% lower than the value recorded in August.

The market saw that the growth of consumer prices in the United States is still stable, despite the aggressive anti-inflationary campaign launched by the Federal Reserve this year.

This significantly increased traders' expectations about the continuation of the hawkish course in America and the next increase in the interest rate by 75 bps.

Moreover, the hot inflation data again provoked a wave of speculation about a possible rise in the indicator in November by a full percentage point. The probability of such a scenario has increased to 13.4%.

Optimism about a more aggressive tightening served as an excellent springboard for the dollar. Literally overnight, the DXY index jumped by more than 0.5%.

One of the most productive majors was the USD/JPY pair. The quote soared by 0.7% and set another record at 147.665.



The last time the dollar traded against the yen at this level was in 1990. However, the USD/JPY pair did not stay at the 32-year high for long.

Shortly after the release of the consumer price index, the large-scale triumph of the greenback was replaced by an epic failure of the same power.

Analysts explain this by the fact that the market has already fully embedded in the value of the dollar expectations about sustained inflation and its impact on the future course of the Fed. Now a new trigger is needed for the USD to grow steadily, and we will get it soon. Now everyone's focus is switching to the Fed's monetary policy meeting next month.

As we approach the moment X, the dollar will grow on strong US economic data.

The yen is an obvious loser

Despite its recent rebound, the USD/JPY pair still maintains a strong upward mood. This morning, the asset is staying near the 32-year peak reached a day earlier.

Even the growing risk of currency intervention cannot weaken the grip of dollar bulls. At the start of Friday, the Japanese government again threatened to intervene in the market if there is a rapid fall in the yen.

Recall that last month, for the first time since 1998, Japan intervened in support of its national currency, when it fell against the dollar below the level of 145.90.

Given the recent statements of Japanese officials regarding the intervention, it can be assumed that now they will not protect any specific levels.

The other day, the Japanese Finance Minister and the head of the Bank of Japan stressed that at this stage the focus is shifted to the rate of change in the exchange rate.

According to analysts, this approach can keep dollar bulls only from sudden movements, but in general USD/JPY will remain in a bullish trend.

In the future, the asset will move to new price highs quietly for several weeks. Perhaps at some point it will get bogged down in consolidation again, but the upcoming rate hike in the US will not allow it to go into suspended animation for a long time.

The monetary divergence of America and Japan, which has already collapsed the yen against the dollar by almost 28% since the beginning of the year, will continue to intensify and put pressure on the JPY.

This week, BOJ Governor Haruhiko Kuroda once again reaffirmed his commitment to a dovish monetary exchange rate.

He again stressed that he does not consider the current inflation a reason to raise rates, especially since the Japanese economy has not yet recovered from the COVID-19 pandemic and still needs incentives.

Kuroda's comment further aggravated the divergence in the policy of the BOJ and the Fed, especially amid the fact that the market is now expecting further tightening in America.

This suggests that the yen's downward trend against the dollar will not change in the near future, even if the threat of further interventions will contribute to slowing the growth of the USD/JPY pair.

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US stock market closed lower, Dow Jones down 1.34%

At the close on the New York Stock Exchange, the Dow Jones fell 1.34%, the S&P 500 index fell 2.37%, and the NASDAQ Composite index fell 3.08%.
The leading performer among the Dow Jones index components today was JPMorgan Chase & Co, which gained 1.82 points or 1.66% to close at 111.19. UnitedHealth Group Incorporated rose 3.22 points or 0.63% to close at 513.13. Boeing Co rose 0.75 points or 0.57% to close at 133.15.
The losers were shares of American Express Company, which lost 4.74 points or 3.35% to end the session at 136.81. Apple Inc was up 3.21% or 4.59 points to close at 138.40, while Chevron Corp was down 3.11% or 5.14 points to close at 160.14. .
The leaders of growth among the components of the S&P 500 index following the results of today's trading were shares of U.S. Bancorp, which rose 3.36% to 42.76, Delta Air Lines Inc, which gained 2.30% to close at 31.08, and Wells Fargo & Company, which rose 1.86%, ending the session at 43.17.
The losers were First Republic Bank, which shed 16.45% to close at 112.57. Shares of The Mosaic Company shed 9.88% to end the session at 46.86. Quotes of CF Industries Holdings Inc decreased in price by 8.40% to 98.04.
Leading gainers among the components of the NASDAQ Composite in today's trading were Agrify Corp, which rose 53.75% to hit 1.45, Fednat Holding Co, which gained 48.02% to close at 0.52, and shares of Imara Inc, which rose 46.90% to end the session at 3.79.
The drop leaders were shares of TOP Financial Group Ltd, which fell in price by 73.47%, closing at 5.49. Shares of Alfi Inc lost 69.90% and ended the session at 0.25. Quotes of Novo Integrated Sciences Inc decreased in price by 61.94% to 0.29.
On the New York Stock Exchange, the number of depreciated securities (2506) exceeded the number of closed in positive territory (579), and quotes of 85 shares remained virtually unchanged. On the NASDAQ stock exchange, 2,720 stocks fell, 1,005 rose, and 229 remained at the previous close.
The CBOE Volatility Index, which is based on S&P 500 options trading, rose 0.25% to 32.02.
Gold futures for December delivery shed 1.67%, or 28.05, to hit $1.00 a troy ounce. In other commodities, WTI crude for November delivery fell 3.75%, or 3.34, to $85.77 a barrel. Futures for Brent crude for December delivery fell 2.93%, or 2.77, to $91.80 a barrel.
Meanwhile, in the Forex market, EUR/USD was down 0.51% to hit 0.97, while USD/JPY was up 1.00% to hit 148.68.
Futures on the USD index rose 0.82% to 113.18.
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US stock market closes higher, Dow Jones gains 1.12%



At the close of the New York Stock Exchange, the Dow Jones was up 1.12%, the S&P 500 was up 1.14% and the NASDAQ Composite was up 0.90%.

Salesforce Inc was the top performer among the components of the Dow Jones index today, up 6.35 points or 4.31% to close at 153.53. Quotes of American Express Company rose by 4.45 points (3.14%), closing the session at 145.99. JPMorgan Chase & Co (NYSE:JPM) rose 2.98 points or 2.57% to close at 118.84.

The losers were shares of Intel Corporation, which lost 0.55 points or 2.08% to end the session at 25.87. Johnson & Johnson was up 0.58 points (0.35%) to close at 166.01, while Nike Inc was down 0.29 points (0.32%) to end at 89. 68.

Leading gainers among the S&P 500 index components in today's trading were Carnival Corporation, which rose 11.28% to 8.09, Lockheed Martin Corporation, which gained 8.69% to close at 431.84, and Norwegian Cruise Line Holdings Ltd (NYSE:NCLH), which rose 8.57% to close at 14.31.

The biggest losers were Moderna Inc, which shed 3.71% to close at 134.09. Shares of Hasbro Inc lost 2.88% to end the session at 65.76. Quotes of DexCom Inc decreased in price by 2.81% to 96.93.

Leading gainers among the components of the NASDAQ Composite in today's trading were COMSovereign Holding Corp, which rose 170.14% to hit 0.12, Akouos Inc, which gained 88.16% to close at 13.19, and shares of Helbiz Inc, which rose by 58.07%, ending the session at around 0.42.

The biggest losers were Agrify Corp, which shed 58.60% to close at 4.43. Shares of Cosmos Holdings Inc lost 47.33% and ended the session at 0.08. Quotes of Salarius Pharmaceuticals Inc decreased in price by 45.18% to 2.74.

On the New York Stock Exchange, the number of securities that rose in price (2293) exceeded the number of those that closed in the red (825), while quotes of 115 shares remained virtually unchanged. On the NASDAQ stock exchange, 2441 companies rose in price, 1295 fell, and 277 remained at the level of the previous close.

The CBOE Volatility Index, which is based on S&P 500 options trading, fell 2.77% to 30.50.

Gold futures for December delivery lost 0.43%, or 7.10, to hit $1.00 a troy ounce. In other commodities, WTI crude for December delivery fell 2.33%, or 1.97, to $82.56 a barrel. Futures for Brent crude for December delivery fell 1.43%, or 1.31, to $90.31 a barrel.

Meanwhile, in the Forex market, the EUR/USD pair remained unchanged 0.20% to 0.99, while USD/JPY edged up 0.12% to hit 149.21.

Futures on the USD index fell 0.02% to 111.88.

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GBP/USD. A feast during the plague



Deputies quarrel, ministers are leaving, Truss' chair is shaking, inflation is rising.

The pound has started a black streak again, although the presence of a white one can be questioned. The burden of problems hangs over the British currency and it does not get better, on the contrary, there are new reasons to think about the potential achievement of parity for the GBP/USD pair.

The dollar gaining strength, the equally rapidly growing inflation in the UK, which the Bank of England continues to ignore, the specter of a recession. All this is happening during a possible change of power in Britain. The new prime minister has not had time to settle in the chair, as MPs want to send her after Boris Johnson. The government's twists and turns are not at the right time, but apparently there is no other way out.

Inflation

The pound fell for a moment after the release of inflation data. The new indicator turned out to be disappointing, the price index in the UK continued to accelerate, reflecting, among other things, the passivity of the local central bank.

In September, inflation moved to double digits, increasing from 9.9% to 10.1% against the consensus of economists of 10%. More importantly, the core inflation rate rose just as quickly, amounting to 6.5% compared to 6.3% in the previous month.

The highest figure in four decades, but succeeding figures are expected to be higher.

"The overall inflation rate will rise to almost 11% in October, primarily due to a 27% increase in energy prices. But in the first quarter, the overall figure should decrease to 9%, since the peak of growth in food and motor fuel prices has probably been reached," Pantheon Macroeconomics economists comment.

High inflation could be made an argument for strengthening the pound due to the aggressive rhetoric of the BoE, which, in theory, should have followed after another record price increase. Now nothing is keeping the central bank from raising the rate sharply at the November meeting, which was raised to 2.25% in September and is expected to rise to about 4% by the first months of the new year. In practice, things may be different.

However, some economists say this may now be less likely after recent scenes in the government. Most of the September budget plan was canceled this week in favor of a return to "austerity."

This leaves the economy on the path to a barely mitigated recession, which, according to the August monetary policy report, could last for about a quarter.

Everything is too complicated, and the authors of this confusion are British politicians.

Downing Street

The inflationary picture in the UK has been erased by reports of new layoffs in the ranks of high-ranking political officials. Following the sudden departure of former Chancellor Kwasi Kwarteng, who was forced to resign on October 14, Interior Minister Sewelluella Braverman left her post.

The pound tried to grow amid large-scale losses on Wednesday. This movement, apparently, was a reaction to the departure of another high-ranking member of the government, followed by a decline in the yield of UK government bonds, which did not correspond to the internal inflationary picture.

Braverman was replaced by Grant Shapps, whom the prime minister had previously pushed to the back of the government.

Who's next? What other reshuffles are waiting for Britain and will this save the country from collapse?

Anyway, the pound likes what is happening with the change of the main characters.

The drop in yields on Wednesday did not correspond to the global background against which US bond yields were pushing other countries higher.

Dollar

Government reshuffles have a short-term impact on the pound. The reality is that the British currency lags behind not only the strong dollar, but also the weak euro.

The pound continued its downward trend, despite extremely high inflation and the rates of the financial markets on the increase in US bond yields after even more hawkish comments from the Federal Reserve representatives.

The pound's illogical reaction to the consumer price index data highlights that the currency is "trading in a structural, not cyclical way. In a cyclical world, higher inflation will be accompanied by higher yields and a stronger currency," HSBC noted.

When markets are most concerned about structural risks, "higher inflation and higher yields are seen as symptoms of a broader problem," the economists explain.

The pound is likely to continue trading structurally until the country's authorities make more efforts to contain the domestic budget deficit or until inflation reaches a peak. In this case, stabilization of the bond market and the pound is possible. In the meantime, the downward trend is the main one. Sterling is waiting for a difficult few months, during which the GBP/USD exchange rate risks falling to 1.0800 and below.



The dollar rally, fueled by even more aggressive Fed rhetoric, will put more pressure on the lifeless pound.

Traders are revisiting US interest rate hikes closer to 5%. In November, the rate can be raised immediately by 100 bps.

The dollar rally in the middle of the week followed statements from Minneapolis Fed chief Neel Kashkari. The official signaled that he had "very little confidence in what inflation will be in six months" and argued that the central bank should keep raising rates until there was "convincing evidence" that the inflationary peak had passed.

As for rates, September forecasts suggested an upper limit of 4.5% by the end of the year. Concerns were also raised about a rise to 4.75% early next year.

Core inflation rose from 6.3% to 6.6% y/y in September, while the official or headline inflation rate remained stubbornly elevated at 8.2%.

After the reversal of the dollar index, expectations about reaching new highs again became more active. The current range is 112.00-114.00. These notes will remain relevant until the next FOMC meeting. If bulls manage to break above 114.00, gains will accelerate to a 2022 peak at 114.80.

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US stocks closed lower, Dow Jones down 0.30%



At the close of the New York Stock Exchange, the Dow Jones was down 0.30%, the S&P 500 was down 0.80% and the NASDAQ Composite was down 0.61%.

The leading gainer among the components of the Dow Jones index today was International Business Machines, which gained 5.79 points (4.73%) to close at 128.30. Salesforce Inc rose 3.83 points or 2.49% to close at 157.50. Verizon Communications Inc rose 0.43 points or 1.18% to close at 37.00.

The biggest losers were Home Depot Inc, which shed 6.03 points or 2.19% to end the session at 269.46. Caterpillar Inc was up 2.10% or 3.87 points to close at 180.54 while Nike Inc was down 1.96% or 1.74 points to end at 86.83. .

Leading gainers among the S&P 500 components in today's trading were Lam Research Corp, which rose 7.81% to 355.87, AT&T Inc, which gained 7.72% to close at 16.74, and shares of Quest Diagnostics Incorporated, which rose 6.32% to close the session at 134.66.

The biggest losers were Allstate Corp, which shed 12.90% to close at 117.71. Shares of Union Pacific Corporation shed 6.80% to end the session at 186.45. Quotes of Tesla Inc decreased in price by 6.65% to 207.28.

Leading gainers among the components of the NASDAQ Composite in today's trading were Nextplay Technologies Inc, which rose 107.31% to hit 0.41, Cabaletta Bio Inc, which gained 50.77% to close at 1.96, and also shares of Save Foods Inc, which rose 31.33% to end the session at 1.97.

The biggest losers were Talaris Therapeutics Inc, which shed 43.39% to close at 1.37. Shares of LMF Acquisition Opportunities Inc shed 34.55% to end the session at 6.82. Quotes of Gaucho Group Holdings Inc decreased in price by 30.40% to 0.21.

On the New York Stock Exchange, the number of securities that fell in price (2067) exceeded the number of those that closed in positive territory (1018), while quotes of 114 shares remained virtually unchanged. On the NASDAQ stock exchange, 2037 stocks fell, 1694 rose, and 240 remained at the previous close.

The CBOE Volatility Index, which is based on S&P 500 options trading, fell 2.54% to 29.98.

Gold futures for December delivery lost 0.17%, or 2.85, to hit $1.00 a troy ounce. In other commodities, WTI crude for December delivery rose 0.50%, or 0.42, to $84.94 a barrel. Futures for Brent crude for December delivery rose 0.25%, or 0.23, to $92.64 a barrel.

Meanwhile, in the Forex market, the EUR/USD pair remained unchanged 0.12% to 0.98, while USD/JPY rallied 0.19% to hit 150.18.

Futures on the USD index fell 0.07% to 112.81.

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