Today G7 meeting will take place - 11.10.2022

Today, the US dollar index continues to rise for the 5th trading session in a row. At the same time, the growth rate has slowed down and it is still far from the recent 20-year high. Investors continue to win back good data on the US labor market for September. There were no significant statistics in the US yesterday due to the Columbus Day holiday. Today it is also not expected. In Japan, Current Account for August was published this morning, which turned out to be worse than expected. This slightly weakened the yen, which is now trading above the psychological level of 145 yen per US dollar. Also, the United Kingdom Claimant Count Change (25.5 thousand) for September was released today. It also turned out to be weaker than forecasts and contributed to the weakening of the pound.

Bitcoin is now trading just below the psychological $20,000 mark. Ethereum Classic (ETC) has collapsed by more than 10%. This could be facilitated by a change in information on the page of this cryptocurrency on the social network Twitter (@eth_classic). Recall that in September, the profitability of ETC mining decreased significantly.

On Monday, US stock quotes fell for the 3rd day in a row. Market participants reacted negatively to a possible increase in the Fed rate by 0.75% at a meeting on November 2 - up to 4%. The probability of this event reached 81.2%. Federal Reserve Vice Chair Lael Brainard said monetary tightening has already begun to slow down the US economy. The US has restricted shipments of some semiconductor chips to China. Because of this, the Philadelphia SE Semiconductor industry index fell by 3.5% and shares of Nvidia (-3.4%), Qualcomm (-5.2%), Micron Technology (-2.9%) and Advanced Micro Devices ( -1.1%). Quotes of Microsoft decreased by 2.1%. According to Refinitiv, S&P 500 companies' third-quarter profits could increase by 4.1% y/y. Recall that at the beginning of the quarter, in July, a much more significant growth of 11.1% y/y was predicted. Note that the S&P 500 fell almost 18% in 12 months (y/y).

Today, oil quotes are falling for the 2nd day in a row. Investors fear a recession in the global economy amid high rates. This may reduce the demand for hydrocarbons. Chicago Fed President Charles Evans suggested that by the end of the 1st quarter of 2023, the Fed will raise the rate to 4.5% and keep it at this level. In addition, market participants do not exclude that the G7 countries will be able to limit the price of Russian oil at a meeting scheduled for today, October 11th.