- US August PCE core inflation +0.6% m/m vs +0.5% expected
- UMich September US final consumer sentiment 58.6 vs 59.5 expected
- Fed's Brainard: We are committed to avoiding pulling back on hikes prematurely
- Fed's Barkin: Fed to persist with tighter policy and not to declare victory prematurely
- Fed's Daly: We need to see a lot more relief on inflation
- ECB's Visco: Rate hikes could have the biggest impact after economy has already slowed
- Atlanta Fed Q3 GDPNow +2.4% vs +0.3% prior
- Watch live: Putin delivers speech on annexing parts of Ukraine
- China cuts personal housing provident fund loan rate by 15 bps
- OPEC+ talks said to narrow range of potential oil output cut to 0.5 to 1.0 mil bpd
- Baker Hughes oil rigs +2 to 604 in the current week
Markets:
- Gold up $1 to $1661
- US 10-year yields up 6.1 bps to 3.81%
- WTI crude oil -$1.52 to $79.71
- S&P 500 down 55 points, or 1.5%, to 3585
- GBP leads, NZD lags
Close the books on a brutal month and quarter. There was nowhere to hide with a nearly 10% decline in stocks in September and the worst month in decades for bonds. The equity selling hit hard into the close after a decent bounce earlier in the day and we closed on the lows of the day, month and year.
The euro and pound were largely unaffected by the drama in stocks but the commodity currencies were battered. NZD/USD fell 2.25% to below 0.56 and within striking distance of the pandemic low of 0.5468.
The loonie and New Zealand dollar were also hit hard though stayed within the weekly ranges.
USD/JPY finishes at 144.77 as we continue to press up against the level that everyone thinks is the Japanese limit. Eventually the market will put the MoF to the test again, especially if yields continue to climb.
About the only positive thing that I can say is that I love it when the week, month and quarter end on a Friday. It's a chance for a new quarter with the cleanest slate. See you Monday.
