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The dollar traded again overall weaker against most major and emerging market currencies with the weakness of the greenback allowing even the USD/TRY pair, which hit a new all-time high earlier this week, to recover.
Gold and silver were trading moderately higher on Wednesday, with silver reaching a new six-week high. Other precious metals like palladium and platinum traded relatively steadily with the latter closing slightly down that day.
Sentiment in the stock market was quite mixed with the US Tech 100 index closing lower, while the US 500 was once again up. In other regions equity indices also moved into different directions like in Europe, where the Germany 40 index once again traded almost unchanged, while indices in some Southern countries like the Italy 40 and the Greece 20 closed with a clear upside.
On Thursday in the U.S. weekly data on jobless claims will be released as well as monthly statistics on existing home sales and the Philadelphia Fed General Business Conditions index. Later in the Asian-Pacific trading session manufacturing and services PMI data from Australia as well as consumer price index (CPI) statistics from Japan can be expected.
The weakness of the dollar allowed the EUR/USD pair to trade higher for the fourth trading day in a row on Wednesday, even though the performance of the euro itself against other majors like the Australian dollar, pound sterling (GBP) and even the Swiss franc (CHF) was rather weak.
The EU CPI release for September confirmed the preliminary numbers showing an annualised inflation rate of 3.4%.
The French Business Climate Indicator released by Thursday morning was surprisingly positive at a level of 107. More significant fundamentals for the eurozone can be expected for Friday when the German and EU manufacturing and services PMI figures will be released.
The rally in Bitcoin continued, propelling the biggest cryptocurrency by market cap to levels around $67k at the top as the trading of a Bitcoin futures ETF is exciting the markets This contributed to the total market cap of the crypto market now exceeding the $2.7 trillion mark with other major altcoins following the positive sentiment of Bitcoin with Ethereum and Cardano trading significantly higher. The surge in Solana meanwhile allowed it to overtake Ripple on market cap terms to the fifth place among non-stablecoins.
The launch of the Bitcoin ETF adds possibilities for investors to trade the crypto market, with options on the ProShares Bitcoin ETF increasing the ability of crypto traders to speculate on markets. Following the Bitcoin ETFs approval some commentators in the crypto market sphere are hopeful that eventually Ethereum ETF could be next. The CME Group offers at this time futures contracts on Bitcoin and Ethereum with the volume of the latter for Wednesday reported to be significantly below the volume in Bitcoin.
Oil was trading higher on Wednesday with a significant gap to the upside being observed just at the time the Energy Information Administration (EIA) published its weekly crude oil stockpile estimates. Contrary to the build that was once again reported on Tuesday in the release of the American Petroleum Institute, EIA numbers indicated a small draw of 0.4 million barrels. What might have been even more important a significant draw in terms of gasoline and distillate inventories was also reported with them being down by 5.4 and 3.9 million barrels respectively.
Natural gas prices meanwhile stabilised and were trading up by Wednesday for the second day in a row following a consolidation in the market lasting until the start of this week. By Thursday as usual the EIA Natural Gas Report can be expected.
Major indices like the US 500 and the US 30 continued to move higher on Wednesday, albeit at a slower pace than on Tuesday. The US Tech 100 index and the major cap FANG+ index both however closed lower.
Pinterest (+12.96%) shares moved to a new three months high after reports that PayPal (-4.90%) was reported to be interested in a deal to buy the company. For PayPal shares this might not have been the best of news as they were the second-worst performer among companies included in the S&P 500 index.
IBM stocks dropped significantly trading down by more than five per cent in after hours, following another bad quarter with the company’s revenue growth being slower than anticipated by some, while earnings were more or less on target.
Tesla shares also moved slightly lower in after-hours despite the company clearly exceeding expectations on earnings and revenue with the 30.5% gross margins in the automotive business driving the earnings per share up to $1.86 (adjusted). Investors might have been also happy to hear that the company’s sales number were up in the quarter, compared to many competitors, for whom supply chain issues, especially in regards of chip shortages affected results.
For Thursday earnings from companies including American Airlines, Intel, Snap and Mattel can be expected. Then on Friday companies like Honeywell, American Express and Schlumberger are releasing their respective numbers.
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