Open: London Session | Forex, Metals, Oil, Agriculture September 21, 2022



Given a bout of mild weather in the coming weeks, there’s no reason why the end of October shouldn’t see a number well in excess of 90%.


Risk assets were already having a rough session in Asia amid the dollar s strength before the pivotal FOMC event and cryptocurrency investors waited with bated breath. When China let its currency drop beyond seven per dollar in 2019, it was taken as a major escalation of the trade war with the US. Despite the Riksbank s historically hawkish rate hike, Sweden s krona lost ground against the dollar. The pound and euro are trapped in a doom loop .


One traditionally popular measure, however, shows confidence steadily rebuilding: the ratio between copper and gold, shown in the graph below. This is why for Paulsen, amid all the market gloom, it may be worthwhile to consider Dr. Copper and perhaps boost one s confidence along the way. The Leuthold Group Historically, when the copper/gold ratio has been in its lower quartile, such as today, Paulsen found that the forward stock market returns were outperforming.
Gold, in contrast, approached a two-year low after plunging below the $1,700-an-ounce mark last week, thanks to the hotter-than-expected August inflation print. This is why Paulsen calls the reddish-brown metal Dr. Copper for its purported Ph.D in economics due to an uncanny ability to predict global-economic turning points. Copper rose on Tuesday, according to final closing prices for three-month contracts on the London Metal Exchange. (Even Bitcoin proponents initially made their case for the cryptocurrency by marketing it as digital gold. )
According to Jim Paulsen, chief investment strategist at the Leuthold Group:The copper/gold ratio is nearing a new high! Is Dr. Copper picking up on something positive coming soon? As such, Paulsen finds himself referring to Fearful Gold.

United States

Fed hike, more ECB rate increases, Russia ups stakes in war and bailout after bailout in Europe. Eyes on Fed The Federal Reserve will probably hike by 75 basis points on Wednesday for the third straight meeting. As the Fed has tightened this year, US equities have nevertheless risen on days when a hike was announced. Zooming out further, the S&P 500 has averaged a gain of more than 1% on Fed Days over the last 10 meetings. Isabelle Lee Survival Tips Find something relaxing to do on Fed Day before the excitement begins.
Citrix debt to cost Wall Street banks about $600 million.


Competition authorities can also consider the EU s data regulations and other rules in its probe, an adviser to the bloc s top court said in a non-binding opinion. Lagarde said in a speech Tuesday evening in Frankfurt that we expect to raise interest rates further over the next several meetings. By taking opportunities to move its huge bond portfolio from bunds to BTPs as bonds mature, the ECB is keeping a lid on the situation for now. Meta Setback | Meta s Facebook suffered a setback in its EU appeal of a German antitrust decision ordering an overhaul of its entire business model.
Both parties are anti-EU, and the combination caused European bond markets to freak out.