Daily global market review
On Monday, the major stock indices experienced modest gains, but beneath the surface, the market presented a mixed picture, especially as long-term interest rates continued to climb. The 10-year Treasury note yield surged by ten basis points to reach 4.54%, marking its highest level in nearly 16 years. Despite the initial selling pressure stemming from this rate increase, equities managed to recover and closed near their session highs.
At the start of the trading day, stocks faced downward pressure due to rising rates and some lingering downside momentum following losses from the previous week. However, sentiment quickly shifted, and the major indices rebounded, thanks in part to a turnaround in mega-cap stocks. Interestingly, the S&P 500 briefly dipped below an initial support level at 4,305, which attracted overdue buying interest, as investors perceived stocks as being short-term oversold.
The S&P 500, a market-cap weighted index, rose by 0.4%, and the Vanguard Mega Cap Growth ETF (MGK) increased by 0.5%. Despite these gains, the S&P 500, Nasdaq, and Russell 2000 were still down for the month, with declines of 3.8%, 5.4%, and 6.1%, respectively.
Among the 11 S&P 500 sectors, eight closed in positive territory. The energy sector led with the most substantial gain, rising by 1.3%, while the consumer staples sector lagged behind with a 0.4% decline.
Decliners slightly outnumbered advancers at both the NYSE and the Nasdaq, with a ratio of approximately 11-to-10. Trading volume was relatively light as some participants were absent due to Yom Kippur observance.
In other news, Chicago Fed President Goolsbee, a voting member of the FOMC, expressed his belief that the Fed has more work to do to bring inflation back to its target level. No significant U.S. economic data was released during the day.
Overall, the market seemed to be anticipating a potential bounce, with the S&P 500 finding support after briefly dipping below the 4,305 level, reaching a low of 4,302. Rising long-term interest rates remained a key factor influencing stock performance, but gains in mega-cap stocks helped support the broader market.
In the United States, the Dow recorded a minimal gain of 0.13%, closing at 34,006.88 points. The S&P 500 showed a slightly stronger performance, with a 0.40% increase, closing at 4,337.44 points. The NASDAQ index rose by 0.45%, ending the day at 13,271.32 points. The VIX, a volatility index, experienced a decrease of 1.74%, closing at 16.90. The Russell 2000 index gained 0.44%, closing at 1,784.24 points. In Canada, the S&P/TSX Composite index increased by 0.10%, closing at 19,800.61 points, while the S&P/TSX 60 rose by 0.13%, closing at 1,187.32 points. In Brazil, the BOVESPA index saw a slight decrease of 0.07%, closing at 115,924.61 points. In Chile, the S&P IPSA index declined by 0.79%, closing at 5,785.84 points, and in Mexico, the S&P/BMV IPC index decreased by 0.60%, closing at 51,367.46 points.
In Europe, the STOXX Europe 50 and STOXX Europe 600 indices remained unchanged, closing at 3,926.53 and 450.44 points, respectively. The FTSE 100 index in the United Kingdom also remained unchanged at 7,623.99 points, while the FTSE MIB index in Italy ended the day at 28,382.19 points with no change. In France, the CAC 40 index showed a decrease of 0.85%, closing at 7,123.88 points.
In Asia, the Nikkei 225 index in Japan remained stable at 32,678.62 points, while the Hang Seng index in Hong Kong saw a notable decline of 1.82%, closing at 17,729.29 points. The Shanghai Composite index in China recorded a modest decrease of 0.54%, closing at 3,115.61 points. The S&P/ASX 200 index in Australia remained unchanged at 7,076.50 points, and the KOSPI index in South Korea decreased by 0.49%, closing at 2,495.76 points. In Taiwan, the Taiwan SE index increased by 0.66%, closing at 16,452.23 points.
On September 25th, various stock market indices in India exhibited different levels of performance. Among the indices, the NIFTY Midcap 100 index showed the highest gain, with a positive change of +0.66%, equivalent to +266.55 points. It closed at 40,405.70 after reaching a high of 40,456.35 and a low of 39,909.85. On the other hand, the India VIX index experienced the highest percentage increase, rising by +2.25%, or +0.2400 points, to close at 10.9000, with a high of 11.3050 and a low of 10.2725. Conversely, the Nifty 50 Value 20 index displayed the most significant decline in value, with a change of -0.38%, resulting in a decrease of -40.00 points. It closed at 10,440.85, having reached a high of 10,500.40 and a low of 10,404.95. Additionally, the Nifty Next 50 index recorded the highest percentage loss, with a decrease of -0.23%, or -105.05 points, closing at 45,070.95 after hitting a high of 45,281.45 and a low of 44,876.40.
In the world of cryptocurrencies, the Nasdaq Crypto Index experienced a decrease of 0.80%, closing at 1,501.91 points. Bitcoin showed a marginal gain of 0.13%, reaching a price of $26,288.00. Ether recorded a 0.45% increase, with a price of $1,587.70. Litecoin saw a stronger performance, rising by 1.29% to reach a price of $64.33, while XRP remained stable at $0.50.
In the bonds and rates category, the 3 Month Treasury yield stands at 5.305%, showing a slight decrease of 0.020%. The 2 Year Treasury yield is at 5.144%, marking an increase of 0.048%. The 5 Year Treasury yield stands at 4.621%, with a rise of 0.054%. Meanwhile, the 10 Year Treasury yield is at 4.534%, reflecting an increase of 0.102%, and the 30 Year Treasury yield is at 4.653%, showing a notable increase of 0.134%.
In the currencies market, the Euro to US Dollar exchange rate is at 1.0598, with a minimal increase of 0.06%. The British Pound to US Dollar exchange rate is at 1.2214, indicating a slight increase of 0.02%. The US Dollar to Canadian Dollar exchange rate is at 1.3454, with a negligible decrease of 0.01%. The US Dollar to Swiss Franc exchange rate stands at 0.9120, showing a minor increase of 0.01%. Lastly, the US Dollar to Japanese Yen exchange rate is at 148.8105, with a slight decrease of 0.04%
Several key commodity and energy indices, along with individual energy and metal prices, were monitored during the trading day. The Bloomberg Commodity index showed a slight decrease of 0.40%, closing at 239.35, with a daily range between 238.56 and 240.49. The UBS Bloomberg CMCI index decreased by 0.33% to 1,557.93, reaching a high of 1,564.05 and a low of 1,554.34. The Reuters/Jefferies CRB index dipped by 0.32% to 320.98, with a high of 322.02 and a low of 320.98. The Rogers International index decreased by 0.21%, closing at 3,894.65, with a daily range between 3,875.03 and 3,909.19. The S&P GSCI index experienced a decline of 0.29%, ending at 3,743.78, with a high of 3,771.52 and a low of 3,723.07.
In the energy sector, WTI Crude Oil on the Nymex increased by 0.18% to reach a price of USD 89.84 per barrel for the November 2023 contract. Brent Crude on ICE increased by 0.02%, closing at USD 93.29 per barrel for the November 2023 contract. RBOB Gasoline on the Nymex decreased by 0.25% to USD 253.76 per gallon for the October 2023 contract. Natural Gas on the Nymex rose by 0.23%, reaching USD 2.65 per MMBtu for the October 2023 contract. Heating Oil on the Nymex decreased by 0.05% to USD 326.05 per gallon for the October 2023 contract.
In the precious and industrial metals category, Gold on the Comex decreased by 0.08% to USD 1,935.00 per troy ounce for the December 2023 contract. Gold Spot, represented by XAUUSD, increased by 0.01%, closing at USD 1,916.19 per troy ounce. Silver on the Comex decreased by 0.04% to USD 23.38 per troy ounce for the December 2023 contract. Copper on the Comex rose by 0.12% to USD 367.45 per pound for the December 2023 contract. Platinum Spot, represented by XPTUSD, increased by 0.06%, closing at USD 915.30 per troy ounce.
In the agriculture sector, Corn on the CBOT increased by 0.84% to USD 481.25 per bushel for the December 2023 contract. Wheat on the CBOT rose by 1.64% to USD 589.00 per bushel for the December 2023 contract. Cocoa on ICE decreased by 2.40% to USD 3,496.00 per metric ton for the December 2023 contract. Cotton #2 on ICE increased by 2.63% to USD 88.17 per pound for the December 2023 contract. Live Cattle on the CME decreased by 0.07% to USD 191.23 per pound for the December 2023 contract.
The economic data scheduled for release tomorrow encompasses a variety of indicators across different sectors. At 9:00 AM ET, the Case-Shiller Home Price Index for 20 cities will be reported, providing insights into month-over-month and year-over-year changes. Concurrently, the FHFA House Price Index will be published, detailing month-over-month and year-over-year variations.
Following this, at 10:00 AM ET, the New Home Sales figures will be disclosed, offering information on the annual rate of new home sales. Simultaneously, the Consumer Confidence Index, a key market sentiment indicator, will be released. Additionally, the Richmond Fed Manufacturing Index data will become available, though it carries a lower market impact.
Lastly, at 1:00 PM ET, the Money Supply data will be provided, indicating the month-over-month percentage change, the M2 level, and the month-over-month dollar change. These releases collectively contribute to a comprehensive overview of economic conditions.