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Global Markets Weekly roundup, 27 September - 1 October

Updated: Oct 11, 2021


London, Friday, 1 October 2021 -



Global Markets Weekly roundup



U.S.


Dow Jones


  • Friday’s Close: 34,326.46

  • Week’s Change: -471.54

  • % Change YTD: 12.15%


S&P 500


  • Friday’s Close: 4,357.04

  • Week’s Change: -98.44

  • % Change YTD: 16.00%



Nasdaq Composite


  • Friday’s Close: 14,566.70

  • Week’s Change: -481.00

  • % Change YTD: 13.02%



Stocks retreat on inflation and interest rate fears


The rally on Friday, 1 October, resulted to modest losses. Large-cap benchmarks though and Nasdaq Composite Index saw their biggest decline since February and highlighted the worst monthly decline since the outbreak of the pandemic. Performance was affected by inflation and interest rates fears.



Europe


  • Germany - DAX: -2.42%

  • France - CAC: -1.82%

  • Italy - FTSE MIB: -1.36%

  • UK – FTSE 500: gave up 1.36%


Core Eurozone bond yields rose amid a sell-off in global developed market bonds and as hawkish Federal Reserve comments raised expectations of imminent U.S. monetary policy tightening.


German inflation reached 4.1% - 29-year high creating and upward trend in core bond yields


Core markets significantly affected by peripheral and UK government bonds


Eurozone inflation strong at 1.9% up from 1.6% – Lagarde (ECB) says it’s temporary



United Kingdom


Bank of England (BoE) Governor Andrew Bailey notes that UK GDP will eventually start showing signs of recovery to the pre-pandemic levels, early next year.


Germany


Social Democratic Party (SPD), led by Olaf Scholz, won the German general election by only a small margin.


The SPD and the centre-right alliance of the Christian Democratic Union and Christian Social Union (CDU/CSU), to compete for the support of the Green Party and liberal Free Democrats to form a majority coalition government


Angela Merkel will stay on as a caretaker chancellor.



Japan


  • Nikkei: -4.89%

  • TOPIX Index: -5%

  • JPY/USD: 111.20

  • 10-year government bond yield: nearly unchanged at 0.055%


Japanese stocks follow the declining pattern of the U.S. stocks for the week



China


  • CSI 300 Index slightly higher, Shanghai Composite Index declined since last Friday’s close.

  • Government bond yield: generally unchanged

  • RMB/USD: 6.447, up 0.3%



The weak ahead, 4-8 October


Monday

  • Factory orders, U.S. Census Bureau


Tuesday

  • Institute for Supply Management’s nonmanufacturing index

  • Trade Balance, U.S. Census Bureau


Wednesday

  • ADP National Employment Report


Thursday

  • Weekly Unemployment Claims, U.S. Department of Labour

  • Consumer Credit, U.S. FED


Friday

  • Jobs and unemployment, U.S. Bureau of Labour Statistics

  • Wholesale Inventories, U.S. Census Bureau



(Written and edited by: The Decision Maker)