Welcome to the last trading day of September! As the month ends, today’s market action will be shaped by key economic data and developments. Investors are positioning themselves ahead of several important reports and events that could set the tone for the markets heading into October.
This report will provide insights into how consumers are feeling about the economy amid inflation concerns and rising interest rates.
A strong reading could boost market sentiment, while a weaker one might spark caution.
Oil prices and energy sector
Crude oil prices remain a key focus as they continue to hover near recent highs.
Rising oil prices have been fuelling inflation concerns, so investors will be watching the energy sector closely for any developments that could impact prices further.
MARKET MOVERS
EUR/USD
Preferred long preference Long positions above 1.11979 with targets at 1.12069 & 1.12230 in extension. Alternative scenario Below 1.11580 look for further downside with 1.11476 & 1.11301 as targets. EUR/USD approaches 1.1200 despite German Inflation softens below 2%.
Nasdaq100
Potential short preference Short positions below 19863.76 with targets at 19777.47 & 19721.19 in extension. Alternative scenario Above 20085.11 look for further upside with 20182.66 & 20321.47 as targets. If downtrend persist, Support 3 very likely.
XAU/USD
Our preference Short positions below 2666.00 with targets at 2629.00 & 2620.00 in extension. Alternative scenario Above 2666.00 look for further upside with 2674.00 & 2685.00 as targets. Gold price holds correction near 2650.
TODAY’S NEWS HEADLINES
Oil markets not pricing in an ‘all-out war’ after Israel kills Hezbollah leader, but risks persist
Oil prices didn’t react sharply after Hezbollah confirmed that its leader was killed on Friday in an Israeli airstrike in the Lebanese capital of Beirut.
Global benchmark Brent added 1.56% to USD 73.10 a barrel.
US West Texas Intermediate futures traded 1.09% higher at USD 68.19 per barrel.
European shares fall in last trading session of September; autos stocks down 4%
The pan-European Euro Stoxx 600 index was down around 1% at 1:15 p.m. London time, with all sectors and major bourses in negative territory.
Autos stocks were the biggest laggards, down 4.1%.
Overnight in the Asia-Pacific region, stocks in mainland China spiked over 8% while Japan’s Nikkei 225 tumbled nearly 5%.
Gold pulls back but dovish Fed sets it for best quarter since 2016
Gold prices eased on Monday but hovered near the record peak hit last week, setting bullion on track for its best quarter in over eight years following a jumbo US rate cut decision and expectations of another outsized reduction in November.
Spot gold was down 0.2% at USD 2,653.38 per ounce, as of 0404 GMT, owing to a rise in the US dollar.
Bullion has risen slightly over 14% so far this quarter, its best since January 2016.
On a monthly basis, gold has added 6% in September after hitting another record high of USD 2,685.42 on Thursday in a rally driven by the Federal Reserve’s half-percentage-point cut, China’s stimulus measures and ongoing Middle-East war concerns.
