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Stocks rise following three-day slide for Dow, S&P 500

 

 

“Even if you are on the right track, you’ll get run over if you just sit there.” – Will Rogers 

 

 

HEADLINES

 

  • Dollar gains with Fed expected to remain hawkish
  • Gold slips as dollar firms; focus on Jackson Hole symposium
  • Brent oil climbs above $100 a barrel amid talk about OPEC cuts
  • Stocks rise following three-day slide for Dow, S&P 500
  • U.S. Treasury yields tick higher as investors await economic data, look ahead to Fed conference
  • EUR/USD: Strong bearish momentum at present – Scotiabank
  • USDJPY Near Term: Downside favored

 

 

Dollar gains with Fed expected to remain hawkish

 

The dollar gained against a basket of currencies on Wednesday, holding near a 20-year high as investors waited for a Friday speech by the Federal Reserve Chairman for fresh clues on how aggressive the central bank will be in its battle against inflation.

Investors have pared back expectations that the Fed could tilt to a slower pace of rate hikes as inflation remains at 8.5% on an annual basis, well above the Fed's 2% target.

The focus of Jerome Powell's speech in Jackson Hole will be on to what extent an economic slowdown might alter the Fed’s pace of tightening, or if the need to tame inflation pressures will override other economic factors.

 

 

COMMODITIES

 

Gold slips as dollar firms; focus on Jackson Hole symposium

 

Gold prices inched lower on Wednesday on a firmer dollar and as investor focus shifted to the Jackson Hole central bankers event for more clues on rate hike plans.

Spot gold fell 0.2% to $1,743.89 per ounce by 09:49 ET (1349 GMT). It rose as much as 1% in the previous session.

U.S. gold futures eased 0.3% to $1,758.60. The dollar rose 0.3%, making gold more expensive for overseas buyers.

 

 

ENERGY

 

Brent oil climbs above $100 a barrel amid talk about OPEC cuts

 

Benchmark Brent oil climbed above $100 a barrel on Wednesday after Saudi Arabia suggested this week that OPEC could consider cutting output in response to poor liquidity in the crude futures market and fears about a global economic downturn.

Brent for October settlement reached a three-week high and was last up 92 cents at $101.14 per barrel. U.S. crude added 79 cents to trade at $94.53 a barrel.

Contracts for both crudes soared on Tuesday after Energy Minister Prince Abdulaziz bin Salman flagged the possibility of cutting production amid poor futures market liquidity and macro-economic fears.

 

 

STOCKS

 

Stocks rise following three-day slide for Dow, S&P 500

 

The S&P 500 rose Wednesday, attempting to recover from a three-day decline, as investors awaited more clarity on the Federal Reserve’s fight against inflation.

The Dow Jones Industrial Average gained 41 points, or 0.13%. The S&P 500 climbed 0.25%, and the Nasdaq Composite advanced 0.54%. The Dow and the S&P 500 were higher after three straight sessions of declines.

Consumer discretionary, real estate and communication services were the best-performing sectors in the S&P 500. Meanwhile, utilities, materials and consumer staples were market laggards.

Cruise lines were among the best-performing stocks in the broader market index. The Norwegian Cruise Line Holdings jumped 8%, Royal Caribbean Group advanced 7%, and Carnival was 5% higher.

 

U.S. Treasury yields tick higher as investors await economic data, look ahead to Fed conference

 

U.S. Treasury yields were slightly higher on Wednesday, as investors awaited a fresh batch of economic data and Treasury auctions.

The yield on the benchmark 10-year Treasury note rose 2 basis points to 3.078%. The 10-year yield climbed above the 3% for the first time in a month earlier in the week.

The yield on the 30-year Treasury bond gained 2 basis points to 3.275%, while the yield on the short-term 2-year Treasury note was 1 basis point higher, trading at about 3.32%. Yields move inversely to prices, and a basis point is equal to 0.01%.

 

 

ANALYSIS

 

EUR/USD: Strong bearish momentum at present – Scotiabank 

 

“The only remarkable thing from my point of view is the prevalence of EUR bearishness across the screens and market commentary.”

“The broader bear trend remains intact and enjoys the backing of strong, bearish momentum at present.”

“Resistance is 0.9970 and 1.0000/10.”

 

 

CHART

 

USDJPY Near Term: Downside favored

 

Technical View: Short position below 137.1. Target 136.1. Conversely, break above 137.1, to open 137.4.

Comments: The pair is expected to resume descent after correction.

 

 

Source: Trading Central 

 

 

CALENDAR

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

 

SOURCES

 

https://www.reuters.com/markets/us/dollar-pauses-breath-ahead-jackson-hole-2022-08-24/
https://www.reuters.com/article/global-precious/precious-gold-slips-as-dollar-firms-focus-on-jackson-hole-symposium-idUSL4N3002Q7
https://www.cnbc.com/2022/08/24/oil-markets-opec-output-demand-production-supply-inflation-recession.html
https://www.cnbc.com/2022/08/23/stock-market-futures-open-to-close-news.html
https://www.cnbc.com/2022/08/24/us-bonds-treasury-yields-in-focus-as-investors-await-fed-conference.html
https://www.fxstreet.com/news/eur-usd-strong-bearish-momentum-at-present-scotiabank-202208241312