This week's stock market rout is taking a breather, says Axel Rudolph, Senior Market Analyst at online trading platform IG.
US Dollar on track for tenth straight weekly gain
“This week's Fed hawkish pause, in which the central bank left the door open for one more rate hike ahead of year-end, propelled the US dollar to six-month highs. The US dollar basket is on track for its tenth consecutive weekly gain as the sharp rise in the oil price is taking a breather. In the US private sector activity stagnates, falling to its lowest level since February, while in the Eurozone activity contraction eases slightly and in the UK it falls the most in 2 1/2 years."
Stocks stabilize on short-covering ahead of weekend
“Following a week which saw investors shed stocks at the fastest weekly rate in 2023 while US yields rallied to more than decade highs, stock indices stabilized near key technical support on short-covering into the weekend. Next week's Eurozone and US consumer confidence, business climate and unemployment data could trigger further sell-offs in global stock markets, though."
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