US Session (10/22/2021)

On Friday, equities in the US slumped as the chairman of the Federal Reserve expressed concern about inflation.

The S&P 500 fell 0.1%, while the Nasdaq 100 fell 0.9%, as Fed's Powell stated that the central bank was closely monitoring price pressures and will adjust accordingly.

Global supply-chain limitations and shortages, which have pushed up prices, "are likely to endure longer than originally predicted, perhaps well into next year," according to Fed's Powell, who added that "it is still the most likely case" that when those constraints relax, inflation would fall.

Higher pricing pressures and global supply-chain constraints are causing investors to worry that the Fed may raise interest rates sooner than planned. However, a strong start to the earnings season has allayed those anxieties, with the S&P 500 index setting a new high on Thursday.

Higher pricing pressures and global supply-chain constraints are causing investors to worry that the Fed may raise interest rates sooner than planned. However, a strong start to the earnings season has allayed those anxieties, with the S&P 500 index setting a new high on Thursday.

The 10-year US Treasury yield dipped to 1.64% this week, but it was still higher than the previous week. The dollar dipped slightly, putting it on course for the second week of losses. When the value of gold increased.

The declines came after the S&P 500 struggled to find direction early in the session following poor tech earnings. Snap's warning on ad spending wiped out more than $100 billion in market value for the social media business and its peers, including Facebook, Alphabet, Pinterest, and Twitter, and Intel. Meanwhile, slumped due to lower-than-expected sales and component shortages.

Despite the threat of pricing pressures, global markets are poised to post their third weekly gain, aided by the continued recovery from the healthcare crisis. On Friday, European markets rose, led by consumer companies, which rose on the back of solid earnings. Asia's stock markets also gained after China's Evergrande Group pulled back from the brink of default, reducing fears of a contagion effect from the property developer's problems.

After Russia's central bank boosted borrowing prices by more than economists expected, crude oil rose, bitcoin sank to $60,900, and Russia's ruble soared.

Federal Reserve payment system crashed, service restored hours later | Fox  Business

Asia Session (10/24/2021)

The majority of Asian stocks fell as traders weighed inflation risks, a covid-19 outbreak in China, and earnings prospects for major technology firms.

Equities fell slightly in Japan, Hong Kong, and China, where the central bank increased its daily liquidity injection.

Investors are evaluating a delta-variant virus outbreak in China, which is expected to worsen, as well as economic challenges from a slowing real-estate sector.

On Friday, Fed's Powell warned that inflation could remain high for a longer period of time, while also stating that the Fed will begin tapering bond purchases soon but will be patient with rate hikes.

The dollar was steady and the yen retreated.

The Turkish lira plummeted after Turkey’s Pres. Erdoğan declared that ambassadors from ten countries, including the US, Germany, and France, were no longer welcome in Turkey. They had petitioned for the release of a prominent businessman and philanthropist.


Europe Session (10/22/2021)

Europe's equities gained today after China's Evergrande Group came back from the verge of a default, injecting a note of confidence into markets at the end of a week dominated by earnings reports and inflation concerns.

Consumer companies led the climb in the STOXX Europe 600 index, which was on track for the third week of gains, with cosmetics maker L'Oreal soaring more than 6% after reporting third-quarter results that exceeded expectations. On the negative side, the latest corporations to report supply-chain issues were French automaker Renault and the London Stock Exchange Group.

Futures on the S&P 500 were little changed, while NASDAQ 100 contracts fell after Snap, the owner of the Snapchat application, fell in after-hours trading on a tempered earnings projection, weighing on other technology firms. Among the more dramatic changes in Asia, were rallies in China's technology equities and property shares. Evergrande paid a bond coupon before the deadline this weekend, allaying fears that the property developer's difficulties may spread to other markets.

The yield on a 10-year US Treasury yield slipped below 1.70% but remains higher for the week. The dollar fell slightly, putting it on course for the second week of losses. The Federal Reserve is nearing the end of its bond-buying program, and traders are increasing their bets on rate hikes to alleviate pricing pressures. Market-implied inflation forecasts have reached multi-year highs.


Monday FX Option Expiries

USD/JPY: 112.50 ($680.3M), 113.00 ($586M), 111.00 ($575.2M)
EUR/USD: 1.1900 (EU701.2M), 1.1770 (EU533.6M), 1.1883 (EU471.3M)
AUD/USD: 0.7140 (AUD351.5M)
USD/CNY: 6.4000 ($630.8M), 6.6000 ($400M), 6.4885 ($300M)
USD/CAD: 1.2600 ($685M), 1.2500 ($620M)
USD/BRL: 5.6500 ($380M), 5.4800 ($350M), 5.4000 ($350M)
USD/MXN: 20.30 ($362M)