VIX rocking higher, equities selling off, Buffet bearish

Frank Walbaum

Important news for the week

Tue, 06th, 06:30 CET AU RBA interest rate decision.
Fri, 09th, 14:30 CET CA unemployment rate.

Selloff continues

The selloff in the equity market continues. With that the volatility keeps rising sharply as well during the first days of the trading week. Fresh worries about the US economy might be one reason why investors want to offload their shares. Sales off Apple stocks made by Buffett's Berkshire Hathaway could add to the pressure. Figures on Saturday stated that the investment house sold about half of its stake in the company. The Nasdaq 100 index lost as much as USD 2 trillion in valuation in the past three weeks. The index currently trades right on top of the 50- moving average based on the weekly chart. Further declines might be hence on the cards.

Market talk

Despite the strong selloff in the equity market the Dollar remains weak. The Dollar index is losing momentum. However, the AUD has weakened in early trading hours today and is currently rising again. This might indicate potential positive momentum in the coming days. Also the crypto market has gone to the downside. Ether fell below the USD 2,100.00 zone but is currently starting to retrace higher again. The current support area might hold causing the market to run higher. P

Tendencies in the markets

Equities weak, USD weak, ETH at support, oil weak, Gold positive, Silver positive, JPY stronger.

Author

Frank Walbaum

AUD/USD remains above 0.7200 after China's trade data

AUD/USD sits above 0.7200 in the Asian session on Tuesday, near its highest level since May 14. The US Dollar stays under pressure as a rallying Japanese Yen outweighs support from hawkish Fed bets and geopolitical tensions. This, along with firming expectations for another RBA rate hike later this month, acts as a tailwind for the Aussie. However, mixed China trade balance data keep the pair restricted.

USD/JPY recovers to 154.00 amid hawkish BoJ repricing

USD/JPY is recovering from six-month lows of 152.89, retesting 154.00 in European trading on Tuesday. However, the upside attempts appear limited as Japan's upbeat wage growth data and Q2 GDP revision cement bets on a BoJ rate hike next week and continue to boost the Japanese Yen. Meanwhile, US Dollar selling remains unabated despite hawkish Fed expectations and rising geopolitical tensions, lending additional support to the pair.

Gold dips below $4,400 as Middle East tensions grow

Gold posts marginal gains for the third straight day amid risk-off sentiment as tensions in the Middle East escalate and Oil prices rally, strengthening the case for higher interest rates in the world's major economies. Against this background, the XAU/USD pair explores prices below $4,400 during the European trading hours, extending its decline from last week’s highs in the $4,500 area.

Ripple and Stellar outlook: Hold bullish bias above EMAs as derivatives back upside

Ripple (XRP) and Stellar (XLM) hold above the key support zones on Tuesday, hinting at an upside move. Derivatives metrics further support the recovery, with both altcoins showing positive funding rates and rising long positions. Derivatives data shows a bullish tilt among XRP and XLM traders.

Europe in focus: September 2026

Six major net contributors demanded substantial cuts to the European Commission’s proposed 2028–2034 EU budget. Germany, Denmark, the Netherlands, Austria, Finland and Sweden issued a joint position on 27 August calling for the nearly €2 trillion proposal to be reduced by several hundred billion euros and rejecting additional common EU borrowing.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.