As the final full week of September begins, markets will be digesting key developments from the prior week, particularly the outcome of the US Federal Reserve’s policy meeting and global inflation data. Investors will focus on the impact of central bank actions, geopolitical risks, and corporate earnings. The first trading day of the week may set the tone for broader market sentiment.
KEY INDICATORS
Post-Fed sentiment
Investors are continuing to assess the Fed’s policy stance and its implications for inflation, interest rates, and economic growth.
Global economic data
German business sentiment and other global indicators will help shape the outlook for the European and global economies.
Oil prices and inflation concerns
Rising energy costs will remain a focal point for inflation fears and market volatility.
Oil prices rose after the Federal Reserve cut interest rates sharply last week and announced the start of an easing cycle.
MARKET MOVERS
XAU/USD
Long holding preference Long positions above 2630.53 with targets at 2634.96 & 2642.04 in extension. Alternative scenario Below 2618.13 look for further downside with 2611.04 & 2605.50 as targets. Gold held steady around USD 2,620 per ounce on Monday, remaining at fresh record highs after surpassing the USD 2,600 mark last week.
USD/JPY
Potential short preference Short positions below 143.490 with targets at 143.270 & 142.884 in extension. Alternative scenario Above 144.028 look for further upside with 144.232 & 144.437 as targets. A break above the upper level of the channel would lead to a momentum shift from bearish to bullish bias.
Crude Oil (WTI)
Potential short preference Short positions below 70.87 with targets at 70.46 & 69.91 in extension. Alternative scenario Above 71.34 look for further upside with 72.04 & 72.93 as targets. Crude oil remains trading at elevated levels on Monday after severe bombings in Lebanon during the weekend.
TODAY’S NEWS HEADLINES
Oil edges higher US interest rate cut counters weak demand
The oil prices rose slightly on Monday after last week’s cut to US interest rates and a dip in US crude supply in the aftermath of Hurricane Francine countered weaker demand from top oil importer China.
Brent crude futures for November edged up by 14 cents, or 0.19%, to USD 74.63 a barrel by 0815 GMT.
US crude futures for November were up 16 cents, or 0.23%, at USD 71.16.
Europe markets higher; French and German PMIs disappoint
European stocks were slightly higher Monday as investors assessed banking deals and German and French business activity data pointing to renewed declines in the region’s two largest economies.
The pan-European Stoxx 600 index was 0.24% higher at 1:24 p.m. London time.
German business activity also contracted in September, with the HCOB flash composite PMI falling from 48.4 in August to 47.2 in September, a seven-month low.
Gold steadies after hitting record high
Gold steadied on Monday after hitting a record high as strong market sentiment and geopolitical tensions were balanced by a stronger dollar which saw some investors booking profits.
Spot gold was unchanged at USD 2,622.16, after hitting an all-time high of USD 2,631.31 earlier in the session.
Both spot silver and platinum lost 1.6% to USD 30.62 and USD 959.75 per ounce, respectively.
