The core price index for personal consumption expenditures, which excludes volatile food and energy, rose by only 0.1% in August, less than economists had expected. However, the data are outdated, as inflation concerns are mainly driven by the recent rise in energy prices (which will also affect core inflation).
Overall, the markets have calmed down and yesterday's counter-movement will continue today, which means that we will see a “positive” finish at the end of a very bad month and an even worse week (with sharp selling in stocks and bonds).
U.S. Treasury yields remain high and are near a 16-year high, putting further pressure on equities and interest rate sensitive assets. However, we are seeing bonds trade slightly lower today, which is supporting assets that have been sold off heavily recently (e.g., growth/cyclical stocks, bonds, gold, and oil, although the latter just experienced a correction yesterday).
My daily update is shortened today
👁 ROB'S MARKET OVERVIEW:
September 29, 2023
🇺🇸 US Markets ↗️/➡️ (markets with gains, which then meet w/ some profit taking).
Cyclical Stocks ↗️/➡️
Tech/Growth Stocks ↗️/➡️
Financial Stocks ↗️
Defensive Stocks ➡️/↗️
Energy Stocks ↗️ (rebounding from profit taking yesterday)
Materials Stocks ↗️
AUD ↗️ (rebounding from recent losses; benefiting from commodity prices rebounding, improved sentiment)
GBP, CAD ➡️/↗️
EUR, CHF ➡️
USD ↘️/➡️ (giving back more of recent gains; USD mid-term bullish)
⚒ Commodity Markets ↗️
Oil prices ↗️ (rebounding from correction losses)
Natural Gas prices ↕️/↘️
Metal prices ↗️ (benefiting from improved market sentiment; weaker USD)
Precious Metal prices ↗️ (benefiting from weaker USD, slightly cooling yields)
⚡️Cryptos ↕️/↗️ (supported by USD surge pausing; cryptos remain unattractive)
(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)