Mohicans markets：MHM Today’s News

In order to further meet the needs of investors for real-time news of the international market and broaden the channels for investors to understand the market, MHMarkets launches heavily “Todays News” to provide investors with real-time market information.

☆ 20:30 The U.S. released the monthly rate of PPI for September, which was expected to be 0.20% and the previous value was -0.10%. The market will take this opportunity to peek at the current state of the U.S. economy and the Feds policy path.

☆ 21:30 ECB President Lagarde will speak. If Lagarde issues a firm inflation-fighting statement with little mention of peripheral Eurozone countries, the yield gap between peripheral country bonds and German government bonds will continue to widen, thus further pulling down the euro. 

☆ OPEC releases its monthly report for crude oil market .

☆ The Bank of Englands Financial Policy Committee publishes a summary of comments from its latest meeting.

☆ G20 finance ministers and central bank governors meet until October 13.

Market Overview

-- Source: jin10 & Bloomberg

On Tuesday, October 11, the dollar index fell below 113 during the day, but after the Bank of England Bailey speech turned up, out of the deep V trend, closing up 0.115% at 113.29. U.S. 10-year Treasury yields on Tuesday Asian trading once touched 4%, as of the close of U.S. stocks, at 3.945%.

Spot gold touched $1683.9 per ounce during the day, the U.S. stock market late along with the dollar turned up and turned down and approaching the 1660 mark, which finally closed down 0.1% at $1,666.24 per ounce; spot silver narrowly missed the 19 mark, and closed down 2.54% at $19.15 per ounce.

Crude oil continued to fall due to concerns about the recession and demand outlook, with WTI crude oil falling below $88 per barrel during the day and eventually closing down 2.41% at $88.76 per barrel; Brent crude oil closed down 2.51% at $94.41 per barrel.

The ups and downs of three major U.S. stock indices were inconsistent, with the Dow closing up 0.12%, the Nasdaq closing down 1.1% and the S&P 500 closing down 0.65%. Star technology stocks fell in general, Nifty fell more than 6%, TSMC fell nearly 6%, Alibaba fell nearly 5%, and Tesla fell nearly 3%.

European stocks continued to decline, and Germany‘s DAX30 index closed down 0.43%; FTSE 100 index closed down 1.06%; France’s CAC40 index closed down 0.13%; Europe‘s Stoxx 50 index closed down 0.49%; Spain’s IBEX35 index closed down 0.78%; Italys FTSE MIB index closed down 0.87%.

Hot Spots in the Market

——Source: jin10&Bloomberg

1. On Tuesday, the Bank of England again stepped up its intervention and announced that it would expand the scope of its bond buying operations to include index linked bonds. US Treasury Secretary Yellen said that he had discussed the issue of the bond market with British officials and did not comment on British policies; Don't worry about market liquidity; The US economy will remain resilient; He will not resign as finance minister.

2. Sources said that Saudi Arabia ignored the warning of the United States before OPEC+production reduction.

3. The danger level of terrorism in the vicinity of the Crimea Bridge has been raised to the “yellow” level until October 23.

4. Ukrainian President Zelensky: The G7 Group must respond to Russia's bombing of energy infrastructure and impose strict price ceilings on Russian oil and gas exports.

5. The International Monetary Fund predicts that the global economy will grow by 3.2 percent in 2022.

6. The survey of consumer inflation expectations by the New York Federal Reserve in September showed that the inflation expectations for next year fell from 5.7% to 5.4%, the lowest level since September 2021.

7. In 2022, the FOMC vote committee and Cleveland Federal Reserve Chairman Meister said that the Federal Reserve has not made any progress in reducing inflation and needs to further tighten policies. At present, the biggest policy risk is that the Federal Reserve does not increase interest rates enough.

8. Takeo Kishida said that the Bank of Japan needs to maintain its policy until the wages generally rise, and conveyed support for the current central bank governor, Tomohiko Kuroda, eliminating speculation that the latter may end his term earlier.

Institutional Perspective

 —— MHMarkets ETA

1. Deutsche Bank: There is no resistance to the strengthening of the US dollar at present

2. National Australia Bank: do not think that the US dollar has peaked

3. Mitsubishi UFJ: The euro may fall to a level close to 0.90 against the dollar before the end of the year

4. Royal Bank of Canada: As the Bank of England may reduce the expectation of interest rate increase, it is recommended to buy EURGBP

5. Netherlands International: GBPUSD may easily fall below the support level of 1.1

6. Standard Chartered Bank: The slowdown of the US economy will support the Canadian dollar

7. Rabobank: maintain the forecast that the euro will fall to 0.95 against the dollar within one month, and do not rule out the possibility of falling below this level

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