Morning wrap (26.09.2023)

• Yesterday's session on Wall Street closed with modest gains. The U.S. dollar climbed to new historic highs along with 10yr bond yields at 4,54% - highest since 2007.
• S&P expects one more Fed rate hike in this cycle. Analysts await 1,3% US GDP growth in 2024 and 1,4% in 2025 vs 2,3% this year (prior saw 1,7%)
• Ford has abandoned its planned Michigan EV plant worth $3,5 bln. According to UNIFOR, the next company to be affected by the UAV strikes is General Motors - talks are expected to begin today
• Moody's indicated that a potential government shutdown in the U.S. caused by disagreements over the federal budget will underscore the weakness of the current authorities in the U.S. and negatively affect the country's credit rating
• Goldman Sachs CEO Solomon indicated that it will be surprising if there will be not even temporary slowdown in the US economy. Fed Kashkari told that if US inflation will fall in 2024, Fed policy may be soften
• According to Bloomberg, some mutual funds including BlackRock and StateStreet are closing ESG-focused funds
• Markets in the Asia-Pacific region under pressure. The HangSeng index extended its declines by losing more than 1% for another session. E ffectively, the Nikkei 225 retreated more than 0.85%, with the TOPIX down more than 0.3%. Korea's KOSPI lost more than 1.3%.
• Japan's PPI inflation came in at 2.1% vs. 1.8% forecast and 1.7% previously. Consumer sentiment in South Korea fell to 99.7 points vs. 103.1 expected. Samsung plans to move laptop production to India
• China's developers' index extended yesterday's declines that took it to levels not seen in nine months, raising concerns about the sector's debt and the long-term growth of China's economy. Evergrande executives have been detained over failure to pay creditors
• European index futures point to lower European session opening, after another weak session in Asia and mixed futures trading on Wall Street
• S&P expects UK household consupmtion to fall sharply in the second half of the year, and monetary tightening could make the slowdown deeper than expected
• Precious metals are trading under pressure, with silver losing 0.9% with a small 0.1% retreat in gold prices. The dollar index (USDIDX) gains close to 0.1%
• Bernstein Research expressed confidence that the value of cryptocurrency funds may soon grow from $50 billion obencie to around $650 billion over a 5-year horizon - due to technological changes
• Cryptocurrencies are mixed but Bitcoin is doing quite well, its listing rose to $26,400 despite the weakness in the indexes. A near 7% correction is being recorded by Moonbeam, which was trading at euphoric highs yesterday 

EURUSD extends declines, but looking at the dynamics of the downward waves, at least a small short-term unwinding is not excluded. The key resistance is still 1.06.- 1.061 (38.2 Fibo retracement of the upward wave from autumn 2022). Source: xStation5