© Reuters.
–
Investing.com – The road looks set for the Fed’s decision, possibly the deadliest in 40 years, as unemployment data gives the Fed further strength that the economy is on track after a subsequent rate hike.
This comes when traders fear that the US Federal Reserve will raise interest rates by 100 points after disappointing inflation data last Tuesday as expectations rose from zero to 30%.
US jobless claims data was released last week, coinciding with the release of retail sales providing evidence of the weakness or strength of the US economy.
With the start of Thursday’s trading on Wall Street, the losses of the yellow metal widened strongly, while US stocks tended to record losses so far contained, in light of the control of a state of volatility on the trend of the indicators.
gold now
At these times, it fell by 2%, as the US dollar registered levels of $ 1666 an ounce, reaching its lowest levels since April 2020.
On the other hand, futures contracts on the yellow metal fell more than $ 30, or 1.8 percent, to $ 1675 an ounce during these trading moments today, Thursday.
This coincides with the major dollar index recording limited declines in the 0.01% range, to levels close to 109.6 points during trading today on Thursday.
The dollar is hovering near the peak
Conversely, gold’s violent falls occurred during Thursday’s trading as it approached its 20-year high, near 110-point levels.
The dollar index is slightly down at these times by less than 0.1% to levels of 109.6 points, while the index recorded the highest price today at 109.92 points, compared to 109.42 points. of the lowest price.
While US 10-year bonds tended to extend their earnings, they have risen to their highest levels since 2011, reaching 3.46% in today’s trading.
Wall Street
US indices began trading on Thursday with limited declines, before suddenly moving on to small gains during these trading times on Thursday.
Expectations from analysts and big banks are likely to increase US stock losses in the coming days, especially with the release of data giving the US Federal Reserve signs of US economic growth, prompting the bank to increase the pace of tightening. .
It rose during the writing times of the ratio by 0.3%, or the equivalent of 90 points, after falling by the same percentage in the first few minutes of trading today, Thursday, as it hovered near 31230-point levels.
At the same time, trends in the broader Standard & Poor’s 500 index and the Nasdaq tech equity index reversed after falling in the first few minutes, with the first rise of 0.2%, or 8 points, while the Nasdaq rose by 0. , 25%, or 25 points.
Important data
The data showed an increase in total value of 0.3% in August, while it was expected to be 0.1%, after the revised reading for the month of July showed that sales fell by 0.4%, while excluding gasoline, retail sales increased 0.8% in August.
U.S. Department of Labor data revealed that the number of first jobless claims fell by 5,000 to 213,000 in the week ending September 10, from the previous week’s level, revised down by 4,000 applications to 218 thousand.
And it decreased by about 8 thousand requests compared to the average of the previous week, revised down by about a thousand requests to 232 thousand to reach 224 thousand.
Investors await the Federal Reserve meeting next week amid expectations that the bank will raise interest rates by 75 basis points, with the possibility that it will approve a greater than 100 basis point hike, following the decline in requests for help. the fifth consecutive week.
20% discount
Ray Dalio came out with a grim forecast for stocks and the economy after hotter-than-expected inflation rocked financial markets around the world this week.
“It looks like interest rates are expected to go up a lot (towards the higher end of the 4.5% to 6% range),” the billionaire founder of Bridgewater Associates LP wrote in an article.
“This will lead to lower private sector credit growth, which will lead to a reduction in private sector spending, and thus the economy along with it,” he added. “And just raising prices to around 4.5% would cause stock prices to drop by around 20%.”
–
