[Mercato USA]Shares drop sharply, virtual currency sales expansion weighs – at least 146 yen – Bloomberg

The US stock market fell sharply on the 9th. Ahead of the release of important inflation indicators, risk sentiment was weighed down by weak corporate earnings and a growing sale of cryptocurrencies (virtual currency) after close of trading the previous day. .

The dollar rose to a low of 146 yen against the yen. At one point, up to 146.80 yen was bought, so the rate of increase was reduced.

The S&P 500 stock index fell 2.1% from the previous day to 3748.57, falling for the first time in four business days. All 11 industry indices fell. The Dow Jones Industrial Average fell $ 646.89, or 2 percent, to $ 32,513.94. The Nasdaq Composite Index fell 2.5% and the Nasdaq 100 Index fell 2.4%.

Walt Disney and News Corp have fallen short of expectations. Cryptocurrencies fell across the board and bitcoin fell below $ 16,000.

Binance Abandon FTX Acquisition Policy – Issues Beyond Control (1)

Without a major Republican victory in the mid-term elections, investors turned to the US consumer price index (CPI), which could help set the path to tightening US monetary policy.

US CPI should slow slightly;

“Elections are important, but other factors are more important to markets and economies,” said Keith Lerner, Truist Wealth’s co-chief investment officer, in a statement. “Inflation, interest rates, monetary policy, the economy and corporate earnings will continue to have the greatest impact on financial markets over the next year.”

As of 4:09 pm New York time, the 10-year Treasury yield fell 6 basis points to 4.06%. 10-year bondofferLonger-dated government bonds performed relatively poorly as investor demand for bonds was contained.

On the foreign exchange market, the Bloomberg Dollar spot index, which shows the trend of the dollar against the 10 major currencies, rose for the first time in four business days. It was a move to reduce risk ahead of the US CPI announcement. The decline in Bitcoin and equity markets also had an impact. The pound fell 1.8% against the dollar at one point, leaving the week-long high reached the day before.

The dollar index rose 0.6%. As of 4:09 pm New York time, the dollar was up 0.5% against the yen to ¥ 146.46. The euro fell 0.7% against the dollar to $ 1,0009 per euro.

Nordea strategists said the recent dollar sell-off “reflected tactical positioning rather than fundamental changes”. Investors are looking for reasons to reduce excessive exposure to the dollar before the pace of US rate hikes slows at some point, he said.

A “twisted Congress” after the midterm elections “reduces the likelihood of an expansionary fiscal policy fueling US policy rate expectations,” Stephen Innes, managing partner of SPI Asset Management, said in a report.

New York crude oil futures fell for a third consecutive day. Sales spiked as U.S. crude oil inventories soared to levels not seen since July 2021. China’s severe demand outlook due to spread of infections, including the highest number of new coronavirus outbreaks in about five months and a half in Beijing are a negative factor.

Beijing Records Most New Coronavirus Cases Since May; Guangzhou expands the block

West Texas Intermediate (WTI) futures on the New York Mercantile Exchange (NYMEX) for December fell $ 3.08 (3.5%) from the previous day to $ 85.83 a barrel, the lowest in about two weeks. London ICE North Sea Brent contract for January dropped from $ 2.71 to $ 92.65.

“China’s macro data is much more negative,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Management.

The New York gold market fell slightly. It remained close to the high level for the first time in a month. The focus is on the CPI on the 10th to predict the future direction.

December gold futures on the New York Mercantile Exchange (COMEX) closed at $ 1,713.70 an ounce, down $ 2.30, or 0.1%, from the previous day. At 2:45 pm New York time, spot gold was down 0.5% to $ 1,703.87.