Here are the Top Market Analysis for the 3rd of October, 2023.

Currencies (Forex – FX)

• The US dollar was trading mixed against major currencies on Tuesday, as investors awaited key economic data releases this week. The US Federal Reserve is expected to raise interest rates by 75 basis points at its meeting next week, in an effort to combat high inflation. However, the pace of future rate hikes is uncertain, as the Fed balances the need to bring down inflation with the risk of causing a recession.
• EUR/USD: The euro was trading slightly lower against the US dollar on Tuesday, as investors remained cautious ahead of the ECB meeting on Thursday. The ECB is expected to raise interest rates by 50 basis points, but investors are divided on whether the central bank will signal more aggressive rate hikes in the future.
• GBP/USD: The British pound was trading higher against the US dollar on Tuesday, following a positive GDP report. The UK economy grew by 0.5% in the second quarter of 2023, beating analyst expectations. However, the pound remains under pressure due to concerns about a potential recession in the UK.
• USD/JPY: The US dollar was trading higher against the Japanese yen on Tuesday, as investors sought out safe-haven assets amid global economic uncertainty. The Bank of Japan is expected to keep interest rates at ultra-low levels at its meeting on Thursday, which could further weaken the yen.
• AUD/USD: The Australian dollar was trading lower against the US dollar on Tuesday, as investors were concerned about the impact of higher interest rates on the Australian economy. The Reserve Bank of Australia is expected to raise interest rates by 50 basis points at its meeting next week.
• NZD/USD: The New Zealand dollar was trading lower against the US dollar on Tuesday, as investors were concerned about the impact of higher interest rates on the New Zealand economy. The Reserve Bank of New Zealand is expected to raise interest rates by 50 basis points at its meeting next week.
• CAD/USD: The Canadian dollar was trading lower against the US dollar on Tuesday, as investors were concerned about the impact of a potential recession in the US. The Canadian economy is closely tied to the US economy, so a recession in the US would likely lead to a recession in Canada.

Metals

• Gold: Gold prices fell on Tuesday, as investors sold the safe-haven asset in favor of riskier assets. Gold is also facing headwinds from a stronger US dollar and rising interest rates.
• Silver: Silver prices followed gold lower on Tuesday, as investors sold both precious metals. Silver is also facing headwinds from a stronger US dollar and rising interest rates.
• Copper: Copper prices rose on Tuesday, as investors bet on increased demand for the metal from the global electric vehicle (EV) market. Copper is a key ingredient in EV batteries.
• Nickel: Nickel prices also rose on Tuesday, as investors bet on increased demand for the metal from the global EV market. Nickel is also used in stainless steel and other industrial applications.
• Aluminum: Aluminum prices fell on Tuesday, as investors were concerned about a potential recession in the US and China. Aluminum is a widely used metal in the construction and manufacturing sectors, so a recession would likely lead to a decrease in demand for the metal.
• Iron Ore: Iron ore prices fell on Tuesday, as investors were concerned about a potential recession in China. Iron ore is used to make steel, which is a key ingredient in the construction sector.
• per ounce.

Commodities

• Oil: Oil prices fell on Tuesday, as investors worried about a potential recession in the US and China. A recession would likely lead to a decrease in demand for oil.
• Natural gas: Natural gas prices also fell on Tuesday, as investors were concerned about a potential recession in the US and China. A recession would likely lead to a decrease in demand for natural gas.
• Wheat: Wheat prices rose on Tuesday, as investors were concerned about a potential shortage of the grain due to the war in Ukraine. Ukraine is a major exporter of wheat, and the war has disrupted the country’s agricultural sector.
• Corn: Corn prices also rose on Tuesday, as investors were concerned about a potential shortage of the grain due to the war in Ukraine. Ukraine is a major exporter of corn, and the war has disrupted the country’s agricultural sector.
• Soybeans: Soybean prices fell on Tuesday, as investors were concerned about a potential recession in China. China is a major importer of soybeans, and a recession in the country would likely lead to a decrease in demand for the grain.
• Coffee: Coffee prices rose on Tuesday, as investors bet on increased demand for the beverage from the global economy. Coffee consumption is expected to grow in the coming years, as incomes rise in emerging markets.
• Gold, Silver, Copper: Please check Metals category

Indices

• S&P 500: The S&P 500 index closed down 0.14% on Tuesday, to 4,288.39 points.
• Dow Jones Industrial Average: The Dow Jones Industrial Average closed down 0.22% on Tuesday, to 33,433.35 points.
• Nasdaq Composite: The Nasdaq Composite index closed up 0.67% on Tuesday, to 13,307.77 points.
• Russell 2000: The Russell 2000 index, which tracks small-cap US stocks, closed down 0.41% on Tuesday, to 1,972.42 points.
• FTSE 100 (UK): The FTSE 100 closed up 0.55% at 7,562.22.
• DAX (Germany): The DAX closed down 0.20% at 13,605.37.
• CAC 40 Index: The CAC 40 Index, which tracks the performance of the 40 largest companies listed on the Paris Stock Exchange, fell 0.23% on Tuesday.
• VIX Volatility Index: The VIX Volatility Index, also known as the “fear gauge,” closed down 3.89% on Tuesday, to 23.84 points.
• Apple (AAPL): Apple shares rose 1.2% after the company announced that it will hold a product launch event on October 11.
• Amazon (AMZN): Amazon shares rose 0.8% after the company announced that it will invest $1 billion in the construction of a new headquarters in Arlington, Virginia.
• Tesla (TSLA): Tesla shares fell 2.7% after the company announced that it will recall 123,000 vehicles due to a software issue.
• Microsoft (MSFT): Microsoft shares rose 1.0% after the company announced a new partnership with Google to develop cloud computing solutions for businesses.

Cryptocurrencies

• Bitcoin (BTC): Bitcoin rose by over 3% on Tuesday, to trade above $27,000. Bitcoin is now up over 20% from its recent lows.
• Ethereum (ETH): Ethereum rose by over 5% on Tuesday, to trade above $1,700. Ethereum is now up over 30% from its recent lows.
• Other major cryptocurrencies, such as Solana, Cardano, and BNB, also posted gains on Tuesday.

Current Factors Affecting the Markets and Events to Watch Out For

• Geopolitical news: Any escalation in the war in Ukraine could also weigh on the forex market.
• US-China trade war: The US-China trade war is still ongoing, and could continue to weigh on the global economy and the forex market.
• The Chinese government’s recent efforts to stimulate the economy
• Central bank monetary policy decisions
• Changes in investor sentiment
• The adoption of cryptocurrencies by businesses and individuals is growing, but it is still in its early stages.