Its Over, page-14778

Overnight, volatility continued as Dow fell as much as 380pts before a rebound to close 42pts lower at 30,273 , the S&P500 barely changed down -0.2% to 3783 and Nasdaq off by -0.25% to 11148. Crude jumped to $88 after OPEC+ cut outputs (reflecting once again a bipolar world ) while Gold hovered around $1720.

Glad someone pointing out what I've been saying - Watch the Aussie!

US stocks snapped the firm 2-day rally but closed well off their lows - Newsquawk Asia-Pac Market Open


THURSDAY, OCT 06, 2022 - 08:32 AM

• US stocks finished with marginal losses to put a halt to the strong 2-day rally amid upside in yields and a firmer dollar. Nonetheless, price action was less than clear-cut with selling pressure seen at the open although stocks then gradually recovered in which the S&P 500 briefly turned positive and reclaimed the 3,800 level which it ultimately failed to sustain amid a large sell-side imbalance.
• DXY was firmer and reclaimed the 111.00 handle amid the initial downbeat mood and upside in yields, while EUR/USD fell beneath the 0.9900 handle after a failed attempt to reclaim parity.
• Oil prices gained following the OPEC+ agreement for a 2mln BPD output reduction, but with upside capped as cuts are to be measured from current baselines rather than existing production levels leaving the actual output cut just north of 1mln BPD considering that many producers were already failing to meet quota levels.
• Looking ahead, highlights include Australian Trade Data, New Zealand Commodity Price Index, BoJ Governor Speech, Supply from Japan, Holiday Closure in Mainland China. EZ/UK Construction PMI, EZ Retail Sales & ECB Minutes.

LOOKING AHEAD

• Australian Trade Data, New Zealand Commodity Price Index, BoJ Governor Speech, Supply from Japan, Holiday Closure in Mainland China. EZ/UK Construction PMI, EZ Retail Sales & ECB Minutes.

US TRADE

EQUITIES

• US stocks finished with marginal losses to put a halt to the strong 2-day rally amid upside in yields and a firmer dollar. Nonetheless, price action was less than clear-cut with selling pressure seen at the open although stocks then gradually recovered in which the S&P 500 briefly turned positive and reclaimed the 3,800 level which it ultimately failed to sustain amid a large sell-side imbalance.
• SPX -0.22% at 3,782, NDX -0.08% at 11,573, DJIA -0.14% at 30,273, RUT -0.74% at 1,762.

NOTABLE HEADLINES

• Fed's Bostic (2024 voter) said the inflation fight is still in early days and wants rates at a moderately restrictive level from 4.0%-4.5% then hold to assess the impact. Bostic stated the Fed should not be too quick to cut rates if the economy weakens but stay purposeful and resolute in seeing inflation lowered. Bostic also noted the August inflation report shows price pressures are still broad and stubborn, while he added that low unemployment means Fed has manoeuvring room to continue tightening.
• Fed's Daly (2024 Voter) said the Fed is resolute at increasing rates into restrictive territory and expects inflation to end 2022 close to 3.0% rather than 2.0%. Daly also stated that they have to be prepared for inflation to be more persistent than they expect, while she added that they will hike to restrictive territory and hold it there for a while.
• White House Economic Advisor Deese said the labour market is showing signs of resilience and signs of cooling.
• FiveThirtyEight said Democrats are slightly favoured to win the Senate.
• Twitter (TWTR) and Elon Musk are continuing talks about closing the deal and hope to have an agreement soon, possibly as soon as today, according to WSJ sources.

DATA RECAP

• US ISM Non-Manufacturing PMI (Sep) 56.7 vs. Exp. 56.0 (Prev. 56.9)
• US ISM Non-Manufacturing New Orders Index (Sep) 60.6 (Prev. 61.8)
• US ISM Non-Manufacturing Price Paid Index (Sep) 68.7 (Prev. 71.5)
• US S&P Global Services PMI Final (Sep) 49.3 (Prev. 49.2)
• US S&P Global Composite Final PMI (Sep) 49.5 (Prev. 49.3)
• US ADP National Employment (Sep) 208k vs. Exp. 200k (Prev. 132k, Rev. 185k)