26th September 2022 Market Update
FPG Fortune Prime Global Overnight headlines
Introduction
The global markets reflected widespread declines as Wall Street extended losses, with the Dow Jones hitting a new 2022 low. The AUD fell sharply, while Brent crude and spot gold experienced significant drops. As central banks continue to combat inflation, investors remain cautious amid volatile market conditions. Here’s an overview of the day’s key movements.
Key Takeaways
- Wall Street Decline: Dow fell 1.6%, marking a fresh 2022 low, while S&P 500 and Nasdaq dropped by 1.7% and 1.8%, respectively.
- UK Gilt Yields Surge: 10-year gilt yields jumped 33 basis points to 3.82%, driven by the UK government’s financial plans.
- Brent Crude Plunge: Fell 4.1% to $86.74 per barrel, reflecting energy market uncertainties.
Wall Street Performance: New Yearly Lows
All three major US benchmarks extended losses, with all 11 S&P 500 sectors finishing lower. Investor sentiment weakened as fears of a prolonged economic slowdown persisted.
Index Movements
- Dow Jones: Dropped 1.6%, closing at a new low for 2022.
- S&P 500: Declined 1.7%, with all sectors in the red.
- Nasdaq: Fell 1.8%, driven by sharp declines in tech stocks.
Global Sentiment
The VIX Index, a measure of market volatility, rose marginally, indicating heightened investor caution.
Currency and Bond Market Updates
Currency markets reflected significant movement, particularly in the AUD, while bond yields varied across regions.
Currency Highlights
- AUD: Fell 1.8%, trading at US cents 65.28, driven by a stronger US dollar and risk-off sentiment.
- EUR and GBP: Showed minimal movement amid ongoing uncertainties in Europe.
Bond Yields
- US 10-Year Treasury: Yield decreased 3 basis points to 3.68%, reflecting cautious optimism about Federal Reserve policies.
- UK 10-Year Gilt: Surged 33 basis points to 3.82%, reacting to the UK government’s fiscal measures.
- Australia: Yield rose to 3.9%, underscoring inflationary concerns.
Commodity Market Trends
Commodities faced mixed performances, with gold and Brent crude witnessing notable declines.
Spot Gold
- Dropped 1.6%, settling at $1643.94 per ounce, as a stronger US dollar pressured precious metals.
Brent Crude
- Fell 4.1% to $86.74 per barrel, reflecting demand concerns amid global economic slowdown fears.
Iron Ore
- Rose 0.8%, closing at $99.60 per tonne, driven by improved Chinese manufacturing outlook.
European Market Performance
European indices mirrored Wall Street’s downturn, with significant losses across the board.
Key Indices
- Stoxx 50: Declined 2.3%.
- FTSE: Fell 2%.
- CAC: Dropped 2.3%.
- DAX: Lost 2%, driven by concerns over energy supplies and inflation.
Today’s Economic Agenda
The global economic calendar features critical updates, including sentiment surveys and manufacturing indices.
No Local Data
There are no major local economic reports scheduled.
Overseas Data Highlights
- OECD Forecast Update: Expected revisions to global growth predictions.
- German IFO Business Climate Survey: September data to provide insights into business sentiment.
- Japan Services and Manufacturing PMIs: August figures to assess economic recovery.
- US Data Releases: Chicago Fed National Activity Index and Dallas Fed Manufacturing Index for September.
Conclusion
September 26, 2022, highlighted widespread declines across global markets, with Wall Street benchmarks hitting new 2022 lows and commodities like Brent crude experiencing significant drops. As central banks globally remain focused on taming inflation, market volatility is expected to persist. Fortune Prime Global (FPG) remains committed to providing timely insights to navigate these challenging financial times. Stay informed with FPG Overnight Headlines.
