Mohicans markets：MHMarkets Today News

In order to further meet investors' demand for real-time news on the international market and broaden the channels for investors to understand the market, MHMarkets launched Today News to provide investors with real-time market information.

☆ 16:00 Eurozone releases preliminary of Manufacturing PMI for October.

☆ 21:45 U.S. releases preliminary of Markit Manufacturing and Service PMI for October.

☆ Next day 01:00 UK Conservative Party announces its candidate list for party leader. Former British Chancellor of the Exchequer, David Sunac, may become the youngest British Prime Minister in more than 200 years. The market expects that huge economic and fiscal headwinds ahead will bring further pain to the pound, regardless of who wins the race to become the next British Prime Minister. Investors will renew their focus on the poor outlook for the UK economy from now on.

Market Overview

——Source: jin10&Bloomberg

On Friday, October 21, the dollar index first rose sharply to 113.97, before reversing sharply after the “New Federal Reserve News Service” article, falling nearly 2% to close down 0.877% at 111.86. The yen staged a major comeback, rising as much as 2.7 percent against the dollar after falling below the 152 mark to 146.23, which was the biggest gain since March 2020. U.S. bond yields took a break, with the 10-year yield falling to 4.22%, parting from a 2007 high above 4.3%, and the 2-year yield, which is more sensitive to interest rates, fell to 4.48%. 30-year British bonds posted their best one-week performance in decades.

Spot gold moved sharply higher than the daily low of 1617.21 to break through $1650per ounce, up to 1657.97, eventually closing up 1.89% at $1657.82 per ounce; spot silver quickly rose above $19per ounce, closing up 4.28% at $19.41per ounce.

Speculative sentiment returned to fuel crude oil, with WTI crude closing up 0.63% at $86.16/barrel and Brent crude closing up 0.92% at $93.92 per barrel. U.S. natural gas futures extended their decline, falling below $5 per million British thermal, which was a seven-month low. European natural gas fell more than 10% and more than 20% for the week.

U.S. stocks closed collectively higher, with the Dow closing up 2.47%, the Nasdaq closing up 2.31% and the S&P 500 closing up 2.37%. Most sectors were higher, with photovoltaic stocks and vaccine stocks leading the way. Large technology stocks generally closed higher, Nifty closed up nearly 8%. Snap closed down more than 28% after the results, dragging down the social media sector to underperform the market. Last week, the Dow rose 4.89%, the Nasdaq rose 5.22%, the S&P 500 rose 4.75%, the largest single-week gain since June.

Most European stocks fell, Germany's DAX30 index closed down 0.29%; FTSE 100 index closed up 0.37%; France's CAC40 index closed down 0.85%; Europe's Stoxx 50 index closed down 0.46%; Spain's IBEX35 index closed down 1.29%; Italy's FTSE MIB index closed down 0.62%.

Market Focus

——Source: jin10 & Bloomberg

1、The new Federal Reserve News Agency NickTimiraos said that the Fed officials are moving toward another 75 basis points of interest rate hikes, as well as consider whether to signal a small rate hike in December.

2、The Japanese authorities took advantage of the Fed may slow down the pace of interest rate hikes to intervene in the currency market.

3、U.S. officials may cap Russian oil prices above $60 per barrel to maintain supply, a level higher than signaled earlier.

4、French President Emmanuel Macron announced France's decision to withdraw from the Energy Charter Treaty because it was deemed inconsistent with the goals of the Paris Agreement.

5、According to AFP, German Chancellor Scholz announced on the 21st after the EU summit that he will lead a government delegation to visit China next month.

6、The German parliament voted to approve the suspension of the debt brake mechanism, and voted to pass the 200 billion euro emergency relief fund to deal with the energy crisis.

7、Friday's summit, European leaders unanimously supported to make further efforts in limiting the price of natural gas and other emergency measures.

8、Australian Treasurer Chalmers said inflation will stay above the central bank's target range for longer than expected.

9、Moody's downgraded the outlook for the UK's credit rating to “negative” and confirmed the rating at Aa3, the reasons for the downgrade include the increased unpredictability of policy making.

10、Former UK Chancellor of the Exchequer, Mr. Sunac, confirmed that he will run for the head of the Conservative Party.

11、People familiar with the matter revealed that the bank that pledged to help Musk acquire Twitter plans to hold the full $13 billion of debt backing the deal, rather than syndicate it.

12、The European Central Bank refuted reports that it was considering raising the overnight repo rate, saying the views of members of the Money Market Correspondence Group did not provide any insight into the ECB's intentions.

13、U.S. Treasury: U.S. budget deficit shrinks 50% to $1.38 trillion in fiscal year 2022.

14、The Houthis admit to attacking the port of AlDhaba, east of Mukalla, the capital of Hadramaw governorate in eastern Yemen.

15、Giorgia Meloni is sworn in as Italy's prime minister, becoming the first female prime minister in the country's history.

16、Japan and Australia will strengthen their energy and military cooperation, according to a joint statement.

17, Canadian Prime Minister Justin Trudeau announced that the purchase, sale or transfer of handguns will no longer be allowed in Canada, plus the country has banned more than 1,500 assault-style firearms.

18、Saudi Arabia allocated 10 billion riyals ($2.7 billion) to encourage global supply companies to invest in the country as part of a plan to develop its economy into a supply chain hub.

19、Turkish President Recep Tayyip Erdogan said on October 22 that Turkey will not face any problems importing natural gas from Russia this winter.

Institutional Perspective

——MHMarkets ETA

1. Vanda Research: it is difficult to see the pound perform well

2. Westpac: the risk of Japanese authorities intervening again is quite high

3. Saxo Financial: the Bank of Japan may have secretly intervened in the currency market, and the possibility of adjusting the yield curve control policy still exists

4. Bank of Singapore: the next resistance level in the USDJPY is near 153

Risk warning: The margin trading of financial derivatives and other products has high risks, so it is not suitable for all investors. The loss may exceed the initial investment. Please ensure that you fully understand the risks and properly manage your risks. Any opinion, news, research product, analysis, quotation or other information in this article does not constitute the following behavior: (1) In any case, MHM will not provide investment advice or recommendation to clients, nor will it express opinions on whether clients rely on or not to make investment decisions. MHM will never provide investors with trading advice or order trading business through WeChat, QQ or other channels; (2) In any case, any materials, information or other functions provided by MHM to clients through websites, investment platforms, marketing, training activities or other means are general information, which cannot be considered as suitable for clients or suggestions based on clients' personal conditions, and MHM will not bear any responsibility for losses caused by investment based on the above information; Investors should pay attention to the official article logo of MHM and the official channel of the brand, and pay attention to identifying fake websites.