Friday, September 22

The rise of the dollar and decline in oil due to China’s concerns.

On October 28, 2013, a sign advertising the value of real estate outside the New York Stock Exchange is shown.

What is a summary?

Companies are experiencing a significant increase in the U.S. dollar’s value, surpassing its one-month peak.

Wall Street ends on a dismal day.

The election primary results have a negative impact on the assets of Argentina.

The U.S. dollar experienced its highest performance in over a month on Monday, as Wall Street grappled with the latest consumer appetite data and concerns about China’s economy.

After hitting a record high of 0.28% on July 7, the dollar index (.DXY) that tracks the greenback against six currencies was last seen at 103.133.

The news of China’s new bank loans falling in July, despite policymakers cutting interest rates, caused the dollar to surge. Investors were also concerned about the potential impact on home buyers and financial institutions due to the troubled private property developer Country Garden (2007.HK).

Following the suspension of its onshore bonds for the first time, Country Garden’s shares hit an all-time low of 18% on Monday.

Over the weekend, two Chinese listed companies reported that they had not received payment on maturing investment products from Zhongrong International Trust Co.

Edward Moya, a senior market analyst at OANDA, noted that many traders are now turning their attention to China. He suggested that the country’s growth outlook and current property crisis were all contributing to concerns about one of its biggest wealth managers being unable to meet their debt obligations.

A 7% increase in chipmaker Nvidia (NVDA.O) contributed to the slight rise of all three major U.S. indexes, which led to an uptick in megacap growth stocks.

The Dow Jones Industrial Average (.DJI) experienced a 26.23-point increase to reach 35,307.63, while the S&P 500 (.”SPX) gained 25.67 points or 0.58% to 4,489.72 and the Nasdaq Composite (.”IXIC”) increased by 143.48 points (1.05 percent) to 13,788.33.

The MSCI world equity index (.MIWD00000PUS) experienced a 0.12% decline in shares from its previous day, coinciding with the early session’s shadowiness over the global equity sell-off that occurred last week.

On Monday, concerns about China’s ability to return to pre-pandemic levels led to a decrease in oil prices, which offset the gains made on tighter supply.

Brent crude fell by 0.68% to $86.22 per barrel, while U.S. crude lost 0.87% and was sold for $82.47 per barrel in the United States.

The popularity of safe havens in the U.S. increased as voters in Argentina pushed a radical libertarian outsider candidate to first place, which put pressure on the country’s bonds.

The central bank of the country had intended to increase interest rates by 21 percentage points to 118% and depreciate the currency until the formal October election.

The need for a safe haven intensified as benchmark 10-year U.S. Treasury bonds yielded to record highs, peaking at nine months. Benchmark 10-y yields reached 4.215%, the highest since Nov. 8, then dropping back to 4.186%.

The dollar’s appreciation and U.S. Treasuries’ gains had an impact on gold prices, which plummeted to a one-month low on Monday. Spot gold price declines were last recorded at $1,906.20 per ounce, down 0.36%.

The latest economic data, which includes U.S. retail sales on Tuesday and the release of quarterly reports by U-Surf, is expected to result in a 0.4% increase in spending, although it could be sluggish due to Amazon’s Prime Day.

The market’s favorable forecast for U.S. rates may be affected by a strong spending report, with futures suggesting presently that there is essentially 80% chance that the Federal Reserve will begin raising rates to control inflation. Furthermore, the market has over 120 basis points of cuts planned for next year, starting from March.

The reporting was handled by Pete Schroeder in Washington, while Wayne Cole and Alun John were based in Sydney and London, respectively, with Richard Chang and Matthew Lewis contributing to the editing.

The Thomson Reuters Trust Principles are the basis for our standards.

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