Financial News

Stay tuned for our Daily Market Updates – live on your mobile or desktop, 5 days a week, before the European Open.

Volatile quarter comes to an end

Volatile quarter comes to an end

Volatile quarter comes to an end

The last quarter has been extraordinarily volatile, as we have seen a lot of narratives come and go. The US stock markets have been pulling back quite significantly over the last several weeks, and this has extended into the end of this previous week. There are a lot of moving pieces right now that traders around the world are focusing on, not the least of which, of course, will be whether or not there is going to be transitory inflation or if it is becoming a bit stickier. At this point, stickier might be the likeliest of outcomes.

 

Supply chain disruptions continue to be a major issue, and most figureheads around the world are suggesting that the issues will continue well into 2022. The question going forward will be whether or not traders are willing to price that into the markets? September was a horrific month, and most traders are focusing on the possibility of some type of recovery in October, but it should be noted that the moving pieces continue to make October another volatile market just waiting to happen.

US Manufacturing expands

US Manufacturing expands

US manufacturing activity has picked up a bit in September, but factories are continuing to experience longer delays in getting raw materials, while paying higher prices for those same inputs. The Institute of Supply Management announced on Friday that its index of national factory activity has increased to a reading of 61.1 last month, from a reading of 59.9 during the month of August. A reading above 50 indicates expansion in manufacturing, which is roughly 12% of the US economy. Economists expected the number to fall to a reading of 59.64 September.

 

Factory employment also rebounded last month after falling in August to its lowest level since the previous November. This does suggest that manufacturing payrolls growth likely picked up in September after slowing in the previous month as well. At this point, the market continues to pay close attention to whether or not the manufacturing sector in the United States can get the necessary inputs to produce.

US Congress averts slowdown

US Congress averts slowdown

While the United States shutting down was very unlikely, the reality is that the fears of government shut down caused a bit of anxiety in the market. The United States Congress passed a bill to fund the government through December 3 in order to press against the debt ceiling yet again. That being the case, it is one of the major issues that traders are still trying to deal with, as headline risks continue to climb.

 

The next argument in Congress is going to be the infrastructure bill, which most people until just a few months ago thought was a “slam dunk”, as Democrats have majorities in both houses. That being said, the steep price has caused issues with some of the more moderate members of that party. The next week or two will be spending a lot of its focus on this upcoming vote.

Trade with a Licensed Broker

1market.eu

Licensed by CySEC

Our EU client portal, operated by Exelcius Prime Ltd. under CySEC Regulation, license number 366/18.

1market.com

Our global client portal.

Search