Chinese concept stocks retreat, US dollar rebounds, oil prices rise for the second consecutive week | Overseas major asset weekly report
This week, the US dollar index rebounded, while most non-US currencies fell. Chinese concept stocks fell across the board, dropping nearly 7%. International oil prices rose for the second consecutive week due to tensions in the Middle East, with US oil up 1.6% and Brent oil up 1.3%. Major US stock indices hit historic highs, with the financial sector rebounding due to strong performance by major banks. In September, US PPI remained flat month-on-month, while core PPI increased by 0.2%. The market expects the probability of a rate cut by the Federal Reserve in November to exceed 95%. Spot gold rose slightly, while most base metals closed lower
As market sentiment weakened, Chinese concept stocks fell across the board this week, with a nearly 7% decline for the week. The US dollar index continued to rebound this week, leading to a majority of non-US currencies falling. International oil prices rose for the second consecutive week due to escalating tensions in the Middle East.
The strong start to the earnings season boosted the stock market, with major US indices reaching new highs. The S&P 500 rose for the fifth consecutive week. Most sectors saw gains, with most chip stocks rising while consumer discretionary and technology sectors fell. Strong quarterly performances from Wall Street giants such as JP Morgan, Goldman Sachs, and BlackRock boosted the financial sector.
In September, US nominal PPI remained flat month-on-month, while core PPI increased by 0.2% as expected, highlighting mild inflation trends. This is expected to alleviate inflation concerns sparked by higher-than-expected CPI data, with the market now pricing in over a 95% probability of a 25 basis point rate cut by the Federal Reserve in November. This led to the US dollar index pulling back from an eight-week high, with a weekly gain of less than 0.4% and the yen falling below 149, down 0.3% for the week.
The fluctuating US dollar trend pushed spot gold closer to its historical high, with a slight increase for the week. Most base metals closed lower this week.
Investors took profits on long positions, leading to a slight decline in oil prices. Due to escalating tensions in the Middle East, US oil rose 1.6% for the week, while Brent oil rose 1.3%.
