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Inflation data the highlight in terms of European releases today

The pound may have recovered well after its crash on Monday but the heightened volatility isn’t exactly a good sign for the currency itself, as it is arguably a sign that traders are shouting for more credible policy between the central bank and the government. The dollar is little changed so far today after backing away from its highs in the past two days, with month-end and quarter-end trading also in focus. The swings are likely to continue today so that will make it tricky to interpret things until we get to next week.

All eyes will stay on the bond market as a signal for broader market sentiment but as mentioned above, there might be mixed flows taking place with month-end and quarter-end rebalancing also something to consider. The technicals are your best friend in these sorts of situation, so that will at least help provide some guidance amid the recent bout of volatility ahead of the weekend.

Looking ahead in Europe, the euro and ECB outlook will be a focus point as we get French and overall Eurozone inflation data for September. The latter might have the propensity to surprise on the high side, and perhaps hit double-digits – just as what we saw with the German figures yesterday here.

0600 GMT – UK Q2 final GDP figures
0600 GMT – UK September Nationwide house prices
0645 GMT – France September preliminary CPI figures
0700 GMT – Switzerland September KOF leading indicator index
0755 GMT – Germany September unemployment change, rate
0830 GMT – UK August mortgage approvals, credit data
0900 GMT – Eurozone September preliminary CPI figures
0900 GMT – Eurozone August unemployment rate

That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.

China market holidays all next week. Australia time change this weekend.

A couple of notes for traders on some time and date events coming.

  • AUD traders note that Australia switches to daylight saving on Sunday, October 2. Clocks get wound forward an hour. This will impact opening and closing times for Australian markets in your local timezone.
  • In China its National Day holidays this weekend, and right through next week (see pic below). Local markets will be closed.
  • Hong Kong will be closed on Tuesday 4 October.china golden week 2022 holidays

Patience in #Trading —#AnirudhSethi

Why patience is a misunderstood strength | Mint LoungeIt is true that you may not become wealthy in the next couple of months or years if you just began. However, if you maintain the proper mindset and attitude, you will eventually see a piece of that success.

Having patience is all about trading.

It is unfortunate but true that you will not become wealthy immediately, or even in the next few years if you are just beginning. However, if you maintain the proper mindset and attitude, you will eventually see a portion of that accomplishment.

BlackRock claims that the market is underestimating the depth of the recession necessary, leading them to avoid investing in stocks.

BlackRock lead off their view on equities with this. Its about as blunt as you’ll get from analysts:

  • Many central banks aren’t acknowledging the extent of recession needed to rapidly reduce inflation.
  • Markets haven’t priced that so we shun most stocks.

More detail from the asset management firm:blackrock shun equities

World Bank Pres. Malpass – pressing danger is a sharp slowdown in growth, global recession

World Bank president Malpass

  • It may take years for global energy production to diversify away from Russia, prolonging risk of stagflation
  • Pressing danger for developing world is that sharp slowdown in global growth deepens into global recession
  • Increased likelihood of recession in Europe

I can’t see anything controversial or even new in those remarks.

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