U.S. Indexes closed lower on Wednesday as global yields surged. The Russell was the clear underperformer, while the SPX, NDX and DJI were all lower, with the equal-weight S&P (RSP) down 0.7%. Sectors were predominantly lower, with Utilities, Communication Services and Consumer Discretionary lagging, while Energy and Industrials outperformed. Semiconductors and memory names were hit, likely reflecting some reversal of the recent Muse-induced strength following Tuesday’s releases of GPT Astra 6 and Claude Opus 5.5, while Chinese AI firms were pressured overnight following probes into Moonshot and DeepSeek. The weakness in stocks coincided with a global bond sell-off, with US Treasury Yields surging across the curve, particularly at the front end, as participants digested strong and inflationary US Flash PMI data, rising oil prices, further hawkish Fed speak, a very weak 5-year auction and reports surrounding a potential US diesel export ban. Politico reported that the Trump administration was considering a 90-day ban on diesel exports. The report briefly weighed on diesel prices but raised concerns that such a move could push gasoline prices higher, adding to already elevated inflation concerns. However, a White House official later denied the report, calling it “fake news”. Energy Secretary Wright also appears opposed to an outright export ban, although he has indicated support for voluntary limits on diesel exports. The Dollar was stronger amid the hawkish Fed speak and robust PMI data, while also finding support from weakness in energy-importing currencies. Concerns that restrictions on US diesel exports could particularly impact economies reliant on imported energy weighed on the Antipodeans, Japanese Yen and the Pound. Crude prices settled higher as Iran downplayed Tuesday’s talks with the US, while further incidents were reported in the Strait of Hormuz and Iran continued to demand that its conditions be met before reopening the Strait. However, a senior Iranian official reportedly said Tehran is reviewing the US response to its proposal to end hostilities. Meanwhile, mixed reporting surrounding a potential US diesel export ban contributed to choppy trade. Attention turns to the Trump/Xi meeting tomorrow. The Global Manufacturing PMI Report was strongly better-than-expected, with Manufacturing rising to 57.0, above the expected 53.6 (prev. 53.9). Services rose to 58.7 from 56.5 (exp. 56.0), leaving the Composite at 58.4 from 56, a new five-year high. Growth was driven by the service sectors, with its steepest rise in output in over five years. Employment also rose sharply, at a pace not seen for over four years; meanwhile, backlogs of work accelerated and supply chain delays worsened. Of concern, average input costs measured across both goods and services surged higher, hitting the highest since October 2022, blamed widely on higher fuel and transport costs, though wage pressures were also noted to have picked up in many cases. Pantheon Economics wrote that the composite PMI Q3 average reading is consistent with “real final sales to private domestic purchasers—a measure of ‘core’ GDP—rising at an annualised pace of around 4% this quarter”. Fed Vice Chair Barr said further rate hikes are likely needed to ensure a timely return to the 2% inflation target. He added that inflation is not clearly trending towards the 2% target in a timely way, with economic growth strong and the labour market solid. Barr noted that the Fed was out of position and made an adjustment in the right direction to reflect risks. Lastly, the Governor said risks to achieving 2% inflation have increased, while risks to the labour market have receded. Elsewhere, Oil closed higher by 2% while a stronger Dollar saw Gold end Wednesday’s session with a 1.3% loss.
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For anyone following my Platinum Service it 25 points yesterday and is now ahead by 5667 points for September after ending the month of August with a gain of 2645 points after closing July with a gain of 8031 points, after ending June with a new record of 10527 points after ending May with a loss of 1104 points, having ended April with a gain of 1730 points, after ending March with a massive gain of 9002 points, having closed February with a strong gain of 5482 points after ending January with a gain of 4757 points, having closed December with a gain of 2599 points, after ending the month of November with a gain of 4542 points, after ending October with a nice gain of 5110 points after closing September with a gain of 3774 points while ending August with a gain of 3362 points after closing July with a gain of 3753 points after closing June with a gain of 3530 points, having closed May with a gain of 3606 points, after closing April with a gain of 7685 points after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a previous record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 2300 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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