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Sentiments on Wall Street are strongly divided. On one hand, the US100 contract is gaining 0.4%, and the US500 is up by 0.05%, while much worse sentiments are seen on the US2000 and US30, where declines reach 0.66% and 0.45%, respectively. The division of forces in the market shows that the narrative of rapid interest rate cuts by the FED is taking a back seat today.
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In Europe, declines dominated today. The German DE40 fell by 0.17%, while the French CAC40 lost 0.2%, and the British UK100 dropped by 0.57%.
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On the currency market, the US dollar dominates today, despite the widespread narrative of rapid interest rate cuts in the USA, which seem to be grounded by weak economic data. The euro is also performing relatively well. The New Zealand dollar and the Japanese yen are under downward pressure.
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Tesla shares are trading at their highest since February this year, gaining nearly 7%. Although today's gains do not result from a specific fundamental event, they may partly stem from relatively optimistic comments by Tesla's Chairwoman Robyn Denholm and a psychological reaction to breaking a technical resistance.
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According to information from the Washington Post, the Trump administration plans to link COVID-19 vaccines to 25 child deaths, which has raised alarm in the scientific community and caused a sudden drop in the stock prices of Pfizer (PFE.US) and Moderna (MRNA.US), the producers of these vaccines.
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The University of Michigan index fell to 55.4 in September, which was significantly lower than the forecasted 58.2 and the August result. Consumers are becoming less confident about their financial situation and economic prospects. At the same time, long-term inflation expectations exceeded expectations, which will make it difficult for the FED to further ease monetary policy.
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Cryptocurrencies are slightly rising with low volume, supported by speculation about interest rate cuts. Bitcoin and Ethereum are up by just over 1%. Alt-coins are performing better today, with increases reaching 7%.
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The price of oil is experiencing a slight upward correction in a downward trend. WTI oil contracts are up by 0.9%. Oil is currently under pressure from concerns about oversupply. The OPEC report signals increased production and financial speculation against the price of the commodity. Favorable fundamental trends in the economy are working in its favor. At the same time, NATGAS is gaining nearly 1.3%.
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US bond yields are rising again, putting pressure on stock valuations, especially in growth segments. This move suggests that investors are still cautious about inflation prospects and central bank policies, and it is a kind of penalty for the swelling budget deficits of G7 countries.
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A lot is happening in the precious metals market as well. GOLD is gaining 0.44%, while SILVER adds 1.82%.
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