Weekly News Recap 16 – 20 September 2024

News for 16 September 2024

Gold Continues to Rise

At the end of last week, gold prices surged, closing at $2,578/oz. The rise was driven by U.S. investors reducing their risks and increasing gold purchases, which supported the price uptrend.

On September 16 at 7:30 PM, the U.S. will announce the New York State Manufacturing Index, with a forecast of -4.1. (Currently, the market is paying less attention to economic indicators and more to the possibility of interest rate cuts.)

As of the morning of September 16, gold prices have continued to rise, signaling a strong bullish trend.

Bill Dudley Signals Fed May Cut Interest Rates by 0.50% Amid Rumors

Bill Dudley, former president of the New York Fed, revealed on Thursday that there is a strong chance the Fed will reduce interest rates by 0.50%. This aligns with Jim Baird, Chief Investment Officer at Plante Moran Financial Advisors in Southfield, Michigan, who stated, “Rumors have resurfaced that the Fed will discuss a 0.50% rate cut.”

U.S. Stock Market Weakens Early in the Week – Investors Anticipate Fed Rate Cut of 0.5%

On the morning of September 16, Asian markets began to weaken, with the Hang Seng Index opening at 17,252.77 points, down 116.32 points or -0.67%. Meanwhile, the Japanese stock market was closed in observance of Respect for the Aged Day, the Chinese market was closed for the Mid-Autumn Festival, and the South Korean market was closed for Chuseok. This follows investor reactions to disappointing economic news from China released over the weekend.

In the U.S. on the morning of September 16, Dow Jones 30 futures remained sluggish. This is attributed to a shift in market expectations regarding a 0.5% Fed rate cut, increasing from 45% to 59%. Given these expectations, the market perceives the U.S. economy is facing a recession, prompting the Fed to reduce interest rates. Such a rate cut may lead to a weaker U.S. equity market early on, as investors reduce their risk exposure. Consequently, gold prices are expected to rise, while the dollar will likely weaken.

News for 17 September 2024

Gold Holds Steady in a Narrow Range as U.S. Inflation Data Approaches Midweek

On September 16, gold prices rose, closing at $2,582/oz. This increase was attributed to the dollar index weakening from 101.03 to 100.70, which supported the rise in gold prices.

On September 17 at 7:30 PM, the U.S. will announce retail sales figures, with forecasts of -0.2% for overall sales and 0.2% for core retail sales.

Looking ahead, gold prices may form a sideways down pattern, with support at $2,565/oz and resistance at $2,585/oz.

Bausch + Lomb Shares Surge 14.47% to $17.80

The Financial Times reports that Bausch + Lomb Corp is working with Goldman Sachs to solicit interest from potential buyers for the company.

Shares of Bausch + Lomb, a major global contact lens manufacturer, skyrocketed to an all-time high during trading on Wall Street after reports emerged that the company plans to sell itself amid significant debt issues.

Bausch + Lomb has liabilities of approximately $4.7 billion, or about 156 billion baht, while its parent company, Bausch Health, carries over $20 billion in debt, exceeding 666 billion baht.

FTSE 100 Closes Higher, Up +0.06%

The FTSE 100 index on the London Stock Exchange closed at 8,278.44 points, up 5.35 points or +0.06%.

The London market has risen for three consecutive days, with automotive and auto parts stocks hitting a two-month high, increasing by 6.1%. This surge was driven by TI Fluid Systems, which jumped 14.1% after rejecting a takeover offer from ABC Technologies.

Travel and leisure stocks rose by 0.6%, with Playtech, a gambling technology company, soaring 15.1% as it is expected that its core earnings for 2024 will slightly exceed forecasts.

News for 18 September 2024

Gold Slightly Weakens as Market Awaits Fed Meeting Tonight (September 18)

On September 17, gold prices declined, closing at $2,569/oz. This decrease was due to U.S. retail sales coming in higher than expected at 0.1%, leading investors to gradually reduce their risk exposure ahead of the Federal Open Market Committee (FOMC) meeting later tonight, which pressured gold prices.

On September 18 at 1:00 AM, the U.S. Federal Reserve is expected to announce a 0.25% interest rate cut.

Microsoft Shares Rise 0.88%

Shares of Microsoft (MSFT) increased by 0.88% after the company’s board of directors approved a $60 billion share buyback plan and raised the quarterly dividend payout by 10%.

News for 19 September 2024

Gold Fails to Break Through $2,600/oz Resistance, Weakens

On September 18, gold prices tested the resistance around $2,600/oz but could not break through, closing lower at $2,559/oz. This decline was due to the market already pricing in expectations of a 0.5% interest rate cut, which led to a strengthening dollar that pressured gold prices.

On September 19 at 7:30 PM, the U.S. will announce weekly jobless claims, with a forecast of 230k, as well as the Philadelphia Fed Manufacturing Index, expected to be -0.8.

European Inflation Slows as Expected

The European Union’s statistical office reported that the final year-on-year inflation rate for the eurozone was 2.2% in August, down from 2.6% in July, in line with previous expectations. Month-on-month, the headline Consumer Price Index (CPI) in August rose by only 0.1%, which is lower than the preliminary forecast of 0.2% but higher than the July level of 0.0%.

The year-on-year core inflation rate (Core CPI) was 2.8% in August, slightly down from 2.9% in the previous month.

News for 20 September 2024

Gold Rises as Dollar Index Weakens

On September 19, gold prices increased, closing at $2,586/oz. This rise was attributed to U.S. existing home sales contracting to a lower-than-expected 3.86 million units, which led to the dollar index weakening to 100.63, supporting the increase in gold prices.

The outlook suggests that the dollar may continue to weaken, which would be a positive factor for gold prices.

U.S. Jobless Claims Plunge to Lowest Level in 4 Months

The U.S. Department of Labor reported that initial jobless claims decreased by 12,000, bringing the total to 219,000 for the previous week. This marks the lowest level in four months and is below analysts’ forecast of 230,000 claims.

Big-Cap Tech Stocks Surge, Boosting Semiconductor Index

Large-cap technology stocks saw strong buying activity, with Tesla shares rising by 7.3%, Apple up by 3.7%, Meta Platforms increasing by 3.9%, and NVIDIA gaining 4%. This surge helped push the PHLX Semiconductor Index up by 4.3%.