A Risk On Day
Global stocks markets rallied (most of them for the fourth day) on Thursday, led by a 1% US tech recovery and some easing in trade tensions. The S&P closed 0.5% higher. The dollar fell across the board yesterday, moving under the confluence of a disappointing US August CPI which fell back to 2.7% (from 2.9% in July) and which contrasted with the ECB President M. Draghi expressing optimism in achieving its inflation objective. Speaking after the council, he confirmed the ECB will slow asset purchases next month and anticipates phasing them out by year-end. The ECB President also said a solid EU economy was weathering US trade threats, contributing to bolster most EUR pairs’ sentiment yesterday, some of which broke important technical levels. EM currencies also gained for a third day, supported by 3% TYR gain that followed the central bank’s unexpected large rate 6.25% rate hike (to 24%) decision that was seen bolstering or restoring the credibility of the central bank which acted 2 hours after President Erdogan expressed his preference for not raising rates (perhaps it was a Presidential theater but it was well played and good news in any case). RUB rallied for third day as well as did MXN and most other EM while the Argentine peso stood out as the exception shedding 3% despite the central bank keeping rates at 60%. Gold initially rallied on news of an underwhelming US CPI but later shed those gains dropping USD4, staying above USD1200 and preparing the ground for more near term gains in our view. Copper rallied +0.6% to a two weeks high on easing trade tensions as Treasury Secretary Steven Mnuchin reached out to Beijing to propose fresh talks to avoid an escalation of trade war.
————- This is a delayed and abbreviated version of our premium subscription-based report published ahead of the US and European session every day. For a timely and up to date detailed global markets commentary, a comprehensive suite of market reports with global tactical model portfolios and daily insight, join a free trial to our premium research or contact us. Discounts may apply for both private and professional subscription plans. To receive actionable content, a comprehensive wrap up every day and our tactical FX and global models positioning or if you wish to be notified 24/7 with updates on key macro economic releases and/or technical breaches on our comprehensive investment universe covering international equities, bonds, FX, precious metals and commodities, take a free trial to the Bentin Daily, our premium research service. We help you know when to run and when to sit by tracking all developing (or well established) trends and equally importantly by flagging market breakouts. You may join our free trial by clicking here. https://www.bentinpartners.ch/subscribe ————- Important Disclaimer : © Copyright by BentinPartner llc. This blog is not intended as a recommendation, an offer or solicitation for the purchase or sale of any security or underlying asset referenced herein or investment advice. Investors should seek financial advice regarding the suitability of any investment strategy based on their objectives, financial situation, investment horizon and particular needs. This blog does not include information tailored to any particular investor. It has been prepared without any regard to the specific investment objectives, financial situation or particular needs of any person who receives this report. Accordingly, the opinions discussed in this blog may not be suitable for all investors. You should not consider any of the content in this report as legal, tax or financial advice. The data and analysis contained herein are provided "as is" and without warranty of any kind. BentinPartner llc, its employees, or any third party shall not have any liability for any loss sustained by anyone who has relied on the information contained in any publication published by BentinPartner llc. The content and views expressed in this report represents the opinions of Marc Bentin and should not be construed as guarantee of performance with respect to any referenced sector. We remind you that past performance is not necessarily indicative of future results. Although BentinPartner llc believes the information and content included in this report have been obtained from sources considered reliable, no representation or warranty, express or implied, is provided in relation to the accuracy, completeness or reliability of such information. This blog is also not intended to be a complete statement or summary of the industries, markets or developments referred to in the blog. #DollarIndex @federalreserve #ForexMarket #ForexNews #USD #USTreasuries #TradeWars #Markets