Market Update – October 5 – Stocks Leap 3%, USD & Yields Sink

USDIndex – Sank and descended into 110.00 as USD and Yields slipped (US 10yr @3.61%). JOLTS missed significantly (10.05m vs 11.24 last time), adding to hopes Fed may be on the cusp of moderating and possibly even ending rate hikes in coming months (the Fed Pivot). Stocks charged higher (NASDAQ+3.34%). The 5.7% start to Q4 2022 after two days is the best start to a new quarter since Q2 1938 (+8.7%). RBNZ confirmed expectations with a 50bp interest rate hike. NZD rallied. MUSK said TWTR (+22.4%) deal was back on at original $54.20 per share.
EUR – A weak USD saw EUR storm through 0.9900 and rally to Parity at 1.0000. Trades at 0.9967 now.
JPY – Reversed from 145.00 to as low as 143.60 trades at 144.00 now.
GBP – Sterling continued to rally, despite more public disagreements within Government. Cable stalled short of 1.1500 at 1.1490. Cable now trades at 1.1460.
Stocks – US stocks, leapt again, over 3%. US500 +112.50 (+3.06%) 3790. All sectors rallied significantly. Asian markets ahead, European futures flat ahead of open.   

USOil rallied again to $86.60 (9% in 2-days) ahead of OPEC+ meetings today with production cuts now  “up to 2.0 million barrels per day”.
Gold – spiked higher again holding the key $1700 and trades at $1725 now. 
BTC – rallied over the key $20k yesterday to $20.2k now.

Today – EZ, UK & US Final PMIs, US ISM Services, ADP, OPEC, Speeches from Fed’s Bostic & UK PM Truss.

Biggest FX Mover @ (06:30 GMT) NZDCHF (+0.81%) Rallied from Monday’s low at 0.5500 to 0.5696 yesterday, remains resistance today. MAs now aligning higher,  MACD histogram & signal line positive & rising, RSI 56.44 & rising, H1 ATR 0.00216, Daily ATR 0.84006.


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Stuart Cowell

Head Market Analyst

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