mixed trend in Asia; Oil prices are soaring, the dollar is strengthening slightly

by time news

Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations

08:00

Asian stock markets are trading today in a mixed trend. The Nikkei index is trading slightly higher, while the Hang Seng is down by 1.2%. The trend is also mixed in trading contracts on US stock market indices (a slight increase in the Dow Jones and a decrease of about 0.5% in the Nasdaq).

In the commodity trading arena, oil contracts jump by about 2.6% amid reports that OPEC+ members are considering cutting more than a million barrels of daily output. Gold is trading stably.

The dollar traded slightly higher against the main currencies. The euro weakened by about 0.1%, the pound weakened by about 0.55% and traded around 1.11 dollars per pound and against the Japanese yen the dollar strengthened by 0.1% to 144.9 yen per dollar.

The yield on the two-year US government bond is stable at a level of about 4.20% and the yield on the 10-year bond drops slightly to 3.79%.

In Europe and the US, the purchasing managers’ indices (PMI) for the industrial sector for the month of September will be published today, with Europe expected to drop below 50 points (48.5 points) and in the US to 52.5 points.

Traders will closely follow the stock of the Swiss bank Credit Suisse today. This is after the bank’s CEO Ulrich Kerner stated that the bank is at a “critical moment”, in a memo he sent to employees last week, after the bank’s stock fell by 25% in the past three weeks. However, with rumors of a possible collapse in the background, the CEO added that the bank Have a strong capital base and liquidity. Since the beginning of the year, the share of the bank in Zurich has weakened by 25%. According to him, it is wrong to confuse the performance of the stock in the recent period with the bank’s strong foundation.

Recently, more and more reports have surfaced online that the bank is on the brink of collapse despite the CEO’s statements. In addition, the CDS contracts on the bank’s stock indicate record levels not seen since 2008, which in practice means that the shorts are betting that the stock is on the way down. CDS contracts are actually used as insurance against an event of insolvency.

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