20th October 2022 Market Updates
FPG Fortune Prime Global Overnight headlines
The 10-year US Treasury yield increased 13 basis points to 4.13 percent.
The two-year US yield, which is more responsive to impending central bank actions, increased to its highest level since 2007 as speculators raised hopes for a peak policy rate that would be closer to 5%. 4.56 percent was the two-year rate.
All three of the major Wall Street benchmarks finished lower, albeit off their session lows. The S&P 500 ended the day at 3695, with real estate and financials leading the way lower in 10 of its 11 industry groups. In conjunction with the price of oil, energy increased.
Oil prices rose despite US President Joe Biden’s announcement of a plan to sell 15 million barrels of crude oil from the country’s emergency supply and start replenishing the reserve in an effort to lower high gas prices ahead of the November 8 midterm elections.
The action was taken two weeks after Biden was angered by the Saudi Arabia-led OPEC+ group’s decision to side with Russia and agree to a production cut, which stoked concerns about a potential new surge in US pump prices.
At a White House event, Biden said, “With my announcement today, we’re going to continue to stabilise markets and cut prices at a time when the actions of other countries have produced such instability.”
When US crude is at or below the $US67 to $US72 per barrel range, the White House intends to replace the dangerously depleted strategic stocks.
- AUD down 0.6% to 62.70 US cents
- BTC down 0.5% to $US19,186
- The Dow fell 0.3% on Wall Street. S&P -0.7% -0.9% Nasdaq
- Stoxx 50 increased 0.2% in Europe. FTSE -0.2% CAC -0.4% DAX -0.2%
- Spot gold fell by 1.4% to $US1629.24/oz
- Brent crude increased by 2% to $US91.82/barrel
- US-based 10-year yield: 4.13% Germany 2.37% Australia 3.94 percent
Australian Employment for September
Overseas data: US existing home sales in September and the leading index, and the October Philly Fed index