U.S. Indexes rallied on Monday, with broad-based gains across the major US indices, including the equal-weight S&P 500. Sectoral performance was also strong, with all sectors closing higher aside from Real Estate, while Materials, Communication Services and Health Care led the gains. Treasuries sold off and the curve bear steepened, with long-end yields leading the move higher. There was little reaction to the US ISM Services PMI report, which fell marginally below forecasts as activity measures slowed M/M, while Prices accelerated and Employment returned to expansionary territory. The rise in yields supported the Dollar, while the Euro underperformed amid lingering French fiscal concerns and further protests, and Spain’s PM called for a snap election. Elsewhere in FX, the Australian Dollar outperformed alongside higher metal prices, while the Japanese Yen saw some strength following constructive commentary from Japanese PM Takaichi, who vowed to maintain fiscal discipline. Crude prices were choppy on mixed geopolitical reports, particularly regarding Saudi Arabia and Yemen, alongside reports of fires in the Saudi oil export line and strikes at refineries, but crude ultimately settled in the red. Gold gave back its earlier gains as US yields moved higher throughout the session. Note: Brazilian assets rallied following election results over the weekend, which put Bolsonaro ahead of incumbent President Lula, with the Presidential election run-off vote due 25th October. The ISM Services PMI report was mixed. The headline fell to 54.9 in September from 55.4 in August, slightly below the 55.0 forecast but above the 54.1 twelve-month average. Business Activity dropped to 56.5 from 61.7, while New Orders also fell to 56.5 from 61.7, weighing on the headline print. On inflation and employment, the Prices Index rose to 74.0 from 72.6, above the 73.3 forecast, while Employment returned to expansionary territory after two months of contraction, rising to 50.1 from 47.8 and above the 48.8 forecast. Meanwhile, thirteen industries reported growth, one more than in August, while four reported contraction, one fewer than the prior month. The report noted that tariff and fuel-cost impacts were the most cited issues affecting supply chains, with fuel costs mentioned twice as often as any other single issue, while supply-chain constraints were also a key concern. Pantheon Macroeconomics highlights that the report suggests activity in the services sector is rising at no more than a moderate pace and points to less momentum in services activity than indicated by the S&P Global Services PMI. The upside in employment is encouraging, particularly after the weak September NFP report, but the upside in prices remains a clear concern for the Fed. Elsewhere, Oil closed lower by 2% while Gold was flat.
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For anyone following my Platinum Service it made 33 points yesterday and is now ahead by 993 points for October after ending September with a nice gain of 7767 points, 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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