The yield of US government bonds reached a maximum since the crisis of 2008 - 20.10.2022

On Wednesday, the US dollar index rose within the neutral range of 112-113.3 points, in which it has been for 2 weeks. This was mainly due to the growth of US 10-year Treasury yield above 4.17% per annum. Yesterday's data on the residential real estate market turned out to be neutral. United States Building Permits managed to rise in September to 1.564 million from 1.542 million in August, but still turned out to be less than the forecast of 1.595 million. The dollar was supported by the statement of the Federal Reserve Bank of Chicago President Charles Evans about a possible continuation of the tightening of the Fed's monetary policy. This morning Australia released data on the labor market for September, which turned out to be moderately positive. A good Japan Trade Balance has also been published. He prevented USDJPY from testing the psychological level of 150, at which the Bank of Japan's currency intervention is expected. In the US, not very important economic data will be published today: unemployment for the week (Initial Jobless Claims) and indicators of the secondary residential real estate market (Existing Home Sales)

Bitcoin has maintained a neutral range and is still trading below the $20,000 psychological level. This trend has been going on for 5 weeks now. Among the positive news, we can note the plans of Fidelity Digital Assets (a division of the large investment fund Fidelity Investments) to offer its institutional clients a new service for working with Ethereum (ETH).

Yesterday the US stock indexes went down. This was facilitated by weak quarterly reporting from Abbott Laboratories (shares fell by -6.5%), rising bond yields and a relatively negative review of the US economy by Beige Book. Refinitiv slightly raised its S&P 500 total earnings forecast for the third quarter from +2.8% y/y to 3%. Futures for US stock indices are now lower on the background of weak reporting Tesla Inc (-5.5%), which was released after the end of trading. An additional negative this morning was the strong growth of industrial prices in Germany (Germany Producer Price Index) by 45.8% y/y. This caused a decline in European stock indices. Today in the US financial results of Danaher Corporation, Philip Morris, Union Pacific, AT&T and others will be published.

On Wednesday, oil quotes managed to grow by the end of the day. Today, their rise continues. Brent is now above the psychological level of $90/bbl and WTI is above $85/bbl. This happened due to the lack of confirmation of an additional sale of oil from the US Strategic Petroleum Reserve (SPR) in excess of the remaining 15 million barrels from the 180 million barrels limit, which was approved back in May. An additional positive was the rumors about a possible easing of coronavirus restrictions in China.

Natural gas quotes in Europe on ICE Dutch TTF continue to be above $1,100 per 1,000 cubic meters. Now this is a psychological support level.