Market sentiment ended on an upbeat this past week. On Wall Street[1], the Dow Jones, S&P 500[2] and Nasdaq[3] Composite closed +1.22%, +0.79% and +0.09% over the past 5 trading sessions. European markets also climbed, with the FTSE 100[4] and Euro[5] Stoxx[6] 50 rising 0.97% and 0.94% respectively. In Asia, the Hang Seng increased over 1%, while the Nikkei 225[7] lagged behind[8].
Traders may have found some temporary relief from the United States, where Senators raised the debt ceiling through early December. Meanwhile, a non-farm payrolls miss was complicated by rising wages as the unemployment rate declined. That likely kept the door open to Fed policy tapering in November.
Energy prices capitalized on the rosy mood, further supported by rising demand expectations as the global economy gradually open up. Crude oil prices[9] surged almost 5% as the Canadian Dollar[10] outperformed its major counterparts.. Meanwhile, rising Treasury yields and a US Dollar[11] that refused to come off from recent highs kept anti-fiat gold prices[12] under pressure. The Yen[13] fell.
A notable economic event risk in the week ahead is the September US CPI print. Elevated price pressures may keep the door open to Fed tapering being just around the corner. The FOMC[14] meeting minutes are also in focus. Meanwhile, the earnings season kicks off the major US banks reporting. These include Bank of America and Citigroup.
Bitcoin[15] may see some volatility as the White House announced[16] it was weighing a wide-ranging push for cryptocurrency oversight. Elsewhere, the British Pound[17] faces the
