- European indices extended yesterday gains
- Fed officials believe tapering "may soon be warranted"
- US crude oil inventories fall for 7th week
European indices finished today’s session higher, extending yesterday gains as Evergrande concerns eased after the company Hengda which one of the subsidiaries said it would make a coupon payment on Evergrande domestic bonds tomorrow. Also, preliminary data showed consumer sentiment in the Euro Area jumped to a 2-month high in September.
US indexes rose sharply after the Federal Reserve left interest rates near zero as expected and bond-buying at the current $120 billion monthly pace during the September 2021 meeting. Central bank said that if economic recovery progress continues as expected, a taper may soon be warranted. The Fed also signaled interest rates may need to rise faster than initially expected, with 9 of 18 policymakers projecting borrowing costs to rise in 2022.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appOn the commodities markets, WTI crude rose more than 2.40% and is trading above $72.20 a barrel, while Brent is trading nearly 2.50% higher above $74.20 a barrel. EIA data showed crude oil inventory stocks fell almost by 3.5 million barrels in the week ending September 17th, more than market expectations of a 2.4 million draw. Earlier API figures showed US oil inventories fell by 6.108 million barrels last week, the biggest draw since the week ended on July 2nd, 2021, and marking the eighth straight fall. Elsewhere gold rose 0.10% to $ 1,775.00 / oz, while silver is trading 1.6 % higher, above $ 22.80 / oz amid a weaker dollar. Cryptocurrencies moved higher following the FED decision. Bitcoin trades below $43,500 while Ethereum trades above $3,000 mark.
US30 bounced off the lower limit of the 1:1 structure and rose sharply following the FED decision. If current sentiment prevails, then upward move may accelerate towards resistance at 3500 pts. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
