Friday’s weakness in the US stock market sent the Dow Jones Industrial Average (DJIA; -1.62%) and the Dow Jones Transportation Index (DJTA; -1.83%) to their lowest levels since the end of 2020. The S&P 500 (-1.72%) and Nasdaq Composite (-1.8%) managed to hold above their June lows.
This morning, futures prices for major US stock indices rose slightly (S&P +0.17% around 9:50 am). With the exception of the Philippine PSEi (0.22%), all major stock indexes in Asia and Oceania fell today. 7.69 percent attracted attention. Discount on Chinese Shanghai B-Share Index.
Hang Seng (the lowest in 11 years), Taiwan’s TAIEX and Korea’s Kospi set new cyclical highs today. Stock markets in Europe started with a continuation of Friday’s falls, which brought many indices to the levels of new cyclical lows, but later there were attempts to restore the balance (around 9:45 DAX +0.27%, CAC 40+0.58%). .
Polish Stock Exchange
The Polish stock market this morning was one of the weakest in Europe. This morning WIG, WIG-20, mWIG-40 and sWIG-80 hit their new cyclical lows. Among the sectoral indices, WIG-Górnictwo, WIG-Media, WIG-Motoryzacja and WIG-Paliwa experienced another decline today. Yields on 10-year government bonds in almost all developed countries rose this morning. New cyclical highs of these securities were reached in most countries. The 4 percent level - the highest since 2010 - has surpassed the yield of British 10-years.
The “spread” between 10-year and 2-year US bond yields widened to more than -50 basis points. The yield on Polish 10-year bonds was at its highest level in 2 months (6.543%). Crude oil contract prices were the lowest since January (around 9:20 am WTI -0.6%, Brent -1.94%). The price of US natural gas contracts traded on the NYMEX rebounded slightly from recent losses (+2.13% around 9:20 am), but remained below $7/MMBtu, ie. around 30%. below the August peak.
Gold is getting cheaper
Today, gold was the cheapest in over 2 years. EUR/USD fell overnight below 0.96 today (the lowest level in 20 years), but later recovered most of the losses at approx. The 9:10 daily change was only -0.12 percent. Today, the US dollar has set new cyclical highs against most major currencies and it would be easier to trade currencies that have not been the cheapest against the US dollar in years.
The only exception was the Japanese yen, which last week was protected by the Japanese central bank for the first time since 1998. The USD/PLN exchange rate hit its all-time high today, but the dollar weakened a bit later, and around 9:15 am the daily rate change was negligible (+0.05%). The change in the EUR/PLN exchange rate this morning was just as small (-0.08%). Bitcoin was just above its June low (+0.11% around 9:05 am) against the US dollar.
Source: Wprost
