This week in the financial markets has been a rollercoaster ride, with US stock indices fighting to end on a positive note. Crude oil futures settled at $76.84, and there were key events and releases that set the tone for next week’s trading.
The US dollar experienced some selling pressure as yields sagged, while the Baker Hughes US oil rig count increased by 3. European equities closed the week on a much better note than they started.
Looking ahead, the Atlantic disturbance is set to grow, with NOAA predicting a busy season. In terms of currency trading, the CHF emerged as the strongest while the AUD lagged behind as the weakest in the North American session.
Earlier in the week, there was panic in the markets as the Japan’s Nikkei 225 index plummeted by -12.4%. Speculation about an emergency rate cut by the Fed and concerns about circuit breakers dominated the discussions. However, the mood shifted as the week progressed, with the Forex market seeing a reversal in risk sentiments.
US yields rebounded, erasing earlier declines, and the stock market indices clawed back losses to close marginally lower. The USD closed with mixed results against various currencies, showing gains against the AUD and NZD but declines against the JPY, GBP, and CHF. The USDCAD remained virtually unchanged following mixed employment data release.
For the week, the USD showed mixed performance against major currencies, rising against the CHF and GBP but falling against the CAD, AUD, and NZD. The JPY emerged as the strongest currency for the day, while the AUD was the weakest performer.
In the US debt market, the yield curve flattened, with the 2-year yield closing near the high and longer-term yields near the lows. Despite initial recession fears leading to falls on Monday, yields ended the week higher.
Looking at other markets, crude oil traded near $77, gold rose slightly, and silver fell. Bitcoin maintained its value at $60,757 going into the weekend.
US equities closed higher for the day, but were unable to fully recover from the sharp declines earlier in the week. The S&P index ended the week with a slight decline of -0.04%, while the NASDAQ closed lower by -0.18%.
As we wrap up the week, it’s clear that market volatility remains a key theme. Stay tuned for more updates and have a great weekend ahead.
