Risk turned lower overnight after taking an early lead from Asia that saw Gold fall from 2030 to 2010. The European open saw further selling and we broke through key support to sit around 1980 before the next move lower saw a gradual decline for the entire day reaching a low of 1901, the biggest one day decline since 2013. However, Silver was by far the biggest mover on the day down almost 20% at its lows before closing down 15%. No real catalyst other than an extremely overbought asset class but with US yields creeping higher, US virus cases lower and the news that Russia has a coronavirus vaccine there were plenty of possible explanations. US indices also fell on the day with Nasdaq remaining under recent pressure and whilst the S&P500 posted a new all time record high it couldn’t hold those gains and closed -0.8% on the day. In FX the USD gained some ground as yields ticked higher with USD/JPY the biggest mover pushing up through 106.50 but overall not too much change against G10 with Cable, EUR/USD and AUD all sitting around where they were 24 hours ago. The loonie (CAD) bucking that trend and remaining well supported against the USD despite the Oil price closing down 1%. On the political front Democrat candidate Biden announced his VP running mate Kamala Harris which caused no market impact as she was a front runner and largely expected. For the upcoming Asian session we will get a look at RBNZ rate decision expecting no change on the QE front and likely too soon to comment on today’s news that parts of NZ will move back into lockdown due to new virus cases. The highlight of the European session will be UK GDP data before US CPI in the US session.
Market Wrap: 28 September 2023
September 28, 2023
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