Market Summary: Dollar Gains Amid Rising Yields

The US dollar ⁤appreciated against most ‍currencies in ⁤the New York foreign ​exchange market, driven by speculation that the Federal Reserve may not cut interest rates significantly at its⁤ meeting on the‌ 17th-18th.

According to the Ministry of Commerce, August retail⁢ sales (seasonally adjusted) increased by 0.1% from⁣ the previous month, contrary to economists’ forecasts (a decrease ⁣of 0.2%). This suggests that the US economy may have remained strong through most of the third quarter.

Forex Market

The dollar’s appreciation was driven by the unexpected increase⁢ in US retail sales in August, ‍which led to speculation that ​the Federal Reserve will not cut interest rates significantly at its meeting on the 17th-18th.

Marvin Lo, senior global ⁣market strategist at State Street in Boston, stated, “Retail sales ​were decent and did not indicate an immediate need for deep rate cuts.”

Bond‌ Market

In the‌ US financial and bond markets, yields on government bonds rose. However, ⁣the benchmark 10-year bond yield at one ⁢point hit a 16-month low.

The yield ⁣on ⁢10-year government bonds temporarily hit 3.599%, the⁤ lowest level since May 2023. After that, it rose and reached 3.642% in the final stage.

Stock Market

The US stock market closed almost unchanged.⁤ Ahead of the US Federal Open Market Committee’s (FOMC) policy decision on the 18th, the⁣ S&P 500 index, which reached its highest price during trading hours, narrowed its gains.

Microsoft (MSFT.O) rose 0.88%, pushing the S&P 500 higher. The company’s​ board of directors approved a $60 billion ⁤share buyback and raised its quarterly dividend by 10%, which was a positive response.

Precious‍ Metals

Gold bullion futures on the New York Mercantile Exchange (COMEX) continued ⁢to ‍fall ⁢as selling was mainly due to position adjustments ahead of the ⁣US Federal Reserve’s monetary⁣ policy decision the following day.

Energy Market

Crude oil futures on the New York Mercantile⁤ Exchange (NYMEX) continued to rise on the back of ongoing supply concerns due to the impact of the hurricanes and expectations for interest rate cuts from the ⁤US Federal Reserve (Fed).

According to a report released on the 16th by the⁣ US Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE), approximately 12% of crude oil production and 16% of natural gas production are still being recovered in the US Gulf Coast, where Hurricane Francine did‌ not hit‍ last‌ week.