Chinese Markets Ride Manufacturing Pmi High

Stocks

Summary:

Chinese markets have put on an extraordinary performance this morning, boosted by better-than-anticipated manufacturing purchasing managers’ index data and hopes of further stimulus from Beijing in the latest leg of a rally that has been bubbling under for a month.

The China 50 index rallied by almost 8% on the session, the broader Shanghai Composite is up by 7.2% and Hong Kong's Hang Seng by almost 3%. KWEB US, the China internet ETF, has rallied 32.9% over the month, while Alibaba has put on 31.77% in that time and rival JD.com has rallied by almost 40% in the last week and 51.25% in the last month. Much of these gains will come down to investors and traders anticipating a full-blown recovery in the Chinese economy. It wasn't all good news in Asia, however, as Japan’s Nikkei 225 fell by almost 5% as the yen strengthened on the foreign exchanges. USD/JPY is trading at ¥141.99 in Europe, though interestingly the US dollar index is weakening at the same time, perhaps suggesting that there is more to the story than meets the eye.

Turning back to Friday's close, the S&P 500 energy sector finished the week with a 2.11% rally, led by stocks such as APA and Baker Hughes, which were up by 5.96% and 4.06% respectively. The trend could continue as oil prices have picked up again this morning, with WTI up by 1.43% and Brent crude by 1.64% on concerns about escalation of the conflicts in the Middle East, and any potential supply disruptions that could cause. The information technology sector, which has led the market for much of 2024 to date, finished Friday down by 0.96%, though on the week it was up by more than 1.1%. The S&P 500 was down by 0.23% on Friday and up by 0.62% on the week, and to some extent it felt like the index was waiting for the next catalyst. That could come in the shape of Friday’s non-farm payrolls report for September.

There were bigger moves in European equity indices last week, and not just from the usual suspects. The Euro Stoxx 50 was up 4%, and the CAC 40 3.9%, but they were outshone by the DAX Midcap index, which rallied by 5.3% on China revival hopes. At a sector level, the Euro Stoxx Personal and Households Goods index jumped by 14.4% last week, led by components like Christian Dior which rallied by 19% on the week. However, European equity indices have opened lower this morning, with the Italian MIB down by 0.71% at the time of writing.

Copper has rallied by over 1% in early European trade, on course for an 11% monthly gain. Gold and silver are flat this morning, though with the potential to book substantial gains for September as a whole Tin continues to rally, up 1.47% this morning, 2.45% over the last week, and by almost 30% over the last 12 months.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

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Warren Takunda

Cryptocurrency

Bitcoin heads into the end of an uncharacteristically bullish “Rektember” up around 9% as anticipation of further BTC price gains builds.

A sell-off into the weekly close sees Bitcoin still preserving the majority of reclaimed support from last week.

Fed Chair Jerome Powell takes to the stage to start the week as markets square off over the size of November’s interest rate cut.

2024 may still mark Bitcoin’s best September on record, while “Uptober” typically promises 23% upside.

Retail interest in Bitcoin and crypto is edging back to the forefront, as measured by downloads of the Coinbase app.

Whales in the market for more than a few months are resisting the urge to take profits on the BTC positions.

$64K support retest fails to dent Bitcoin bulls’ confidence

In contrast to the past two weeks, Bitcoin saw a sell-off into the Sept. 29 weekly close as support in the mid-$64,000 range came in for a retest.

Data from Cointelegraph Markets Pro and TradingView shows local lows of $64,198 on Bitstamp before a modest recovery.

New All-Time High in 'Uptober?' 5 Things to Know in Bitcoin This Week_1

BTC/USD 1-hour chart. Source: TradingView

With the monthly close now in sight, popular trader CrypNuevo, who predicted the comedown, was among those looking for a fresh long BTC position going forward.

“We could see some volatility related to the monthly close,” he acknowledged in a dedicated thread on X alongside a print of the 4-hour chart.

“So it's possible a sweep of the highs by then, that could get reversed back to support. From support, if we go up again and reclaim the highs, that's a long for me until the 2nd resistance.”

New All-Time High in 'Uptober?' 5 Things to Know in Bitcoin This Week_2

BTC/USDT 4-hour chart. Source: CrypNuevo/X

CrypNuevo noted liquidity on exchange order books potentially favoring a trip toward $67,000 to come.

“Losing support will take us to the downside liquidations,” he added.

New All-Time High in 'Uptober?' 5 Things to Know in Bitcoin This Week_3

BTC liquidation heatmap (Binance). Source: CrypNuevo/X

An optimistic Matthew Hyland meanwhile suggested that even a deeper BTC price correction would not mean the end of Bitcoin’s comeback on longer timeframes.

“If Bitcoin closes the weekly above $65k we will have established a higher-high and higher-low for the first time in 6+ months and established a trend change,” he told X followers.

“Dips going forward would be opportunity and bias must shift to bullish. Anything pullback $52.6k is just a higher-low.” New All-Time High in 'Uptober?' 5 Things to Know in Bitcoin This Week_4

New All-Time High in 'Uptober?' 5 Things to Know in Bitcoin This Week_4

BTC/USD 1-week chart. Source: Matthew Hyland/X

Markets eye Powell, US unemployment data

US Federal Reserve Chair Jerome Powell kicks off the macroeconomic week with a speaking appearance on Sept. 30.

Attending the National Association for Business Economics conference, Powell will be keenly watched for signals about the Fed’s next interest rate move.

After a surprise 0.5% cut this month, markets are eyeing a repeat performance at the next meeting of the Federal Open Market Committee (FOMC) on Nov. 7. The likelihood of this can change significantly, however, depending on Powell’s tone and macro data trends.

This week, unemployment figures take center stage, these already known as a Bitcoin volatility catalyst in 2024.

Commenting, trading resource The Kobeissi Letter considered the chances of the Fed being “behind the curve” in lowering rates.

“Falling rates initially did not work to prop up the economy as it takes 6 to 24 months for the effects to be felt,” it noted on X.

Kobeissi, however, is among those arguing that even the initial 0.5% decrease was going too far.

According to the latest estimates from CME Group’s FedWatch Tool, however, another 0.5% cut is in the lead for November on 52.2%. New All-Time High in 'Uptober?' 5 Things to Know in Bitcoin This Week_5

New All-Time High in 'Uptober?' 5 Things to Know in Bitcoin This Week_5

Fed target rate probabilities. Source: CME Group

Elsewhere, China embarking on sweeping economic stimulus measures is a topic firmly on risk-asset traders’ radar.

“China just posted 5 straight quarters of deflation, the longest streak since 1999,” Kobeissi said on the topic.

“Now, we are seeing capital pile back into equity markets as stimulus kicks off.”

Not such a “Rektember” after all?

While flagging slightly into the monthly close, Bitcoin is still looking at its best September performance on record.

Data from monitoring resource CoinGlass shows the striking contrast between 2024 and a typical September for BTC/USD. New All-Time High in 'Uptober?' 5 Things to Know in Bitcoin This Week_6

New All-Time High in 'Uptober?' 5 Things to Know in Bitcoin This Week_6

BTC/USD monthly returns (screenshot). Source: CoinGlass

Over the past ten years, Bitcoin ob average has tended to end the month down 3.6%, while at present, bulls are looking at around 9% gains.

Moving forward, there are even more exciting times lying in wait for bulls: October, known in crypto circles as “Uptober” thanks to its typically impressive market performance, is almost here. New All-Time High in 'Uptober?' 5 Things to Know in Bitcoin This Week_7

New All-Time High in 'Uptober?' 5 Things to Know in Bitcoin This Week_7

Source: BitcoinHyper

CoinGlass reveals a tough challenge for BTC/USD next month — average October upside is nearly 23%.

From current levels, this would mean a new all-time high — something that commentators nonetheless entertain as a distinct possibility.

“Altcoins are ready to do a 3-5x run, while Bitcoin is likely to break the all-time high coming quarter, following Gold,” crypto trader, analyst and entrepreneur Michaël van de Poppe forecast in one of his latest X posts.

Since 2013, there have only been two “red” October months, these seeing maximum losses of just under 13%.

Coinbase bounces back

A key element of BTC price action since March’s all-time has been a preciptious drop in retail investor participation.

Interest among mainstream consumers fell significantly as Bitcoin and crypto retraced in the half year that followed. Now, however, change may well be afoot.

As Cointelegraph reported, exchanges and trading are slowly headed back into the mainstream consciousness, as evidenced by downloads of one app in particular — that of largest US trading platform Coinbase.

On Sept. 28, the Coinbase app ranked among the top 400 on the Apple AppStore, while research shows that once it reaches the top 200, bull market conditions tend to be in full swing.

“In other words, more people started downloading the app when bitcoin was testing all time highs (November 2020 at $20k, and March 2024 at $69-74K),” its author, analytics account Bitcoindata21, wrote in an X post earlier this month.

Bitcoindata21 likewise noted that when Coinbase is outside the top-500 most popular apps, crypto markets tend to be in a bearish phase.

“Most importantly, the app reached no.1 in December 2017, April 2021, and November 2021…,” they concluded. New All-Time High in 'Uptober?' 5 Things to Know in Bitcoin This Week_8

New All-Time High in 'Uptober?' 5 Things to Know in Bitcoin This Week_8

Coinbase app downloads. Source: Bitcoindata21/X

The Coinbase premium, meanwhile, which measures the difference in exchange prices between Coinbase’s BTC/USD pair and the BTC/USDT on largest global exchange Binance, is now positive again.

Young whales show their colors

When it comes to market moves originating from large-volume investors, onchain data suggests that a new trend is emerging.

In one of its Quicktake blog posts on Sept. 27, onchain analytics platform CryptoQuant drew a distinction between old and new Bitcoin whales.

“Over the past month, whales with over 155 days of inactivity have been less dominant in profit-taking as the price of bitcoin has recovered,” contributor Cauê Oliveira revealed.

“On the other hand, new whales have been actively taking profits, indicating that the interest in closing positions is predominant among institutional players who have entered the market in the past 5-6 months.” New All-Time High in 'Uptober?' 5 Things to Know in Bitcoin This Week_9

New All-Time High in 'Uptober?' 5 Things to Know in Bitcoin This Week_9

Bitcoin whale realized profits (screenshot). Source: CryptoQuant

An accompanying chart showed realized profits by whale cohort — and old hands remain firmly entrenched in their positions.

“Old institutional investors have been more dominant in the first half of the year, with high levels of profit-taking, but now appear to be waiting for a more favorable market for their positions,” Oliveira added.

“This may be reducing selling pressure at this point, providing room for the price to build a more positive structure in this recovery.”

Source: Cointelegraph

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Owen Li

Economic

Edotco Group Sdn Bhd chief executive officer Mohamed Adlan Ahmad Tajudin said such incentives could facilitate investments towards sustainable energy solutions.

“This would help offset the high upfront costs that industry players have to face, and encourage them to adopt clean energy sources like solar and wind.

“Additionally, a cash-back programme for environmental, social and governance (ESG) initiatives, similar to those for electric vehicle purchases, can be considered. This may attract telecommunication companies to integrate sustainability practices, which align with the nation’s green goals,” he told Bernama recently when asked about the industry’s Budget 2025 wishlist.

An alternative is to improve access to green bonds and competitive financing options for RE projects, coupled with stringent ESG reporting standards.

“This would provide the necessary financial support, while driving companies to enhance transparency and sustainability efforts, motivating boards to take more decisive action on ESG initiatives,” he added.

Mohamed Adlan pointed out that telecommunication companies in Malaysia are currently facing rising energy consumption costs due to the growing demand for network accessibility.

While RE such as solar is an option, he said its implementation remains challenging due to the geographically dispersed nature of telecommunication networks, making it difficult to achieve economies of scale with energy-efficient solutions.

Apart from that, Mohamed Adlan said the limited availability of sustainable green energy sources also poses an obstacle to RE transition.

In Malaysia, businesses can subscribe to renewable energy certificates (RECs), benefititng from feed-in tariff (FIT) schemes, or installation of solar panels under the net energy metering mechanism.

However, he said the supply of RE is still limited, based on a first-come-first-serve basis.

He also welcomes frameworks that encourage telecommunication companies to participate in large-scale solar (LSS) projects and energy efficiency programmes, which will enable the sector to reduce its carbon footprint, while maintaining operational efficiency.

This includes allocating LSS projects specifically for the telecommunications industry, he said.

“Currently, solar power producers (SPPs) tend to enter [solar service] agreements (SSAs) with high-energy-consuming industries, like factories, rather than individual telecommunication companies, which have relatively lower emissions.

“By enabling telecommunication companies to engage in SSAs collectively, it could make the agreements more attractive to SPPs, fostering competitive pricing that benefits both parties,” he added.

Furthermore, this collective approach would also accelerate the industry’s RE adoption, aligning with Malaysia’s sustainability goals, while ensuring cost-effective energy solutions for telecommunication, Mohamed Adlan said.

Mohamed Adlan said Edotco, which is a telecommunication infrastructure company, has made significant strides in its RE transformation since it was established in 2012.

To date, the company operates 2,604 telecommunication towers around Asia, with 159 towers in Malaysia, 184 towers in Pakistan, Myanmar (381), and Bangladesh (1,880), which are now running on RE.

“These highlight our efforts to expand RE use across our operations, and contribute to the region’s green transition,” he said.

Prime Minister Datuk Seri Anwar Ibrahim is expected to table the 2025 budget on Oct 18 in Parliament.

Source: The edge markets

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Cohen

Economic

A port strike on the US East Coast and Gulf of Mexico will go ahead starting on Tuesday, the International Longshoremen’s Association union said on Sunday, signalling action that could cause delays and snarl supply chains.

"United States Maritime Alliance ... refuses to address a half-century of wage subjugation," the union said in a statement. The United States Maritime Alliance, known as USMX, represents employers of the East and Gulf Coast longshore industry.

USMX did not immediately comment.

If union members walk off the job at ports stretching from Maine to Texas, it would be the first coast-wide ILA strike since 1977, affecting ports that handle about half the nation's ocean shipping.

A source said no negotiations were taking place Sunday and none are currently planned before the midnight Monday deadline. The union said previously the strike would not impact military cargo shipments or cruise ship traffic.

White House spokesperson Robyn Patterson said late Sunday that over the weekend, senior officials have been in touch with USMX representatives "urging them to come to a fair agreement fairly and quickly — one that reflects the success of the companies." The officials also delivered the same message to ILA, she added.

Earlier on Sunday, President Joe Biden said he did not intend to intervene to prevent a walkout if dock workers failed to secure a new contract by an Oct 1 deadline.

"It's collective bargaining. I don't believe in Taft-Hartley," he told reporters. Presidents can intervene in labor disputes that threaten national security or safety by imposing an 80-day cooling-off period under the federal Taft-Hartley Act.

Reuters first reported on Sept 17 that Biden did not plan to invoke the Taft-Hartley provision, citing a White House official.

A strike could stop the flow of everything from food to automobiles at major ports — in a dispute that could jeopardise jobs and stoke inflation weeks ahead of the US presidential election.

Business Roundtable, which represents major US business leaders, said it was "deeply concerned about the potential strike at the East Coast and Gulf Coast ports."

The group warned a labor stoppage could cost the US economy billions of dollars daily "hurting American businesses, workers and consumers across the country. We urge both sides to come to an agreement before Monday night’s deadline."

For months, the union has threatened to shut down the 36 ports it covers if employers like container ship operator Maersk and its APM Terminals North America do not deliver significant wage increases and stop terminal automation projects.

The dispute is worrying businesses that rely on ocean shipping to export their wares, or secure crucial imports.

The USMX employer group has accused the ILA of refusing to negotiate.

Source: Theedgemarkets

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Justin

Economic

Britain will become the first G7 country to end coal-fired power production with the closure of its last plant, Uniper’s UN0k.DE Ratcliffe-on-Soar in England’s Midlands.

It will end over 140 years of coal power in Britain.

In 2015 Britain announced plans to close coal plants within the next decade as part of wider measures to reach its climate targets. At that time almost 30% of the country’s electricity came from coal but this had fallen to just over 1% last year.

“The UK has proven that it is possible to phase out coal power at unprecedented speed,” said Julia Skorupska, Head of the Powering Past Coal Alliance secretariat, a group of around 60 national governments seeking to end coal power.

The drop in coal power has helped cut Britain's greenhouse gas emissions, which have more than halved since 1990.

Britain, which has a target to reach net zero emissions by 2050, also plans to decarbonise the electricity sector by 2030, a move which will require a rapid ramp-up in renewable power such as wind and solar.

“The era of coal might be ending, but a new age of good energy jobs for our country is just beginning," energy minister Michael Shanks said in an emailed statement.

Emissions from energy make up around three quarters of total greenhouse gas emissions and scientists have said that the use of fossil fuels must be curbed to meet goals set under the Paris climate agreement.

In April the G7 major industrialised countries agreed to scrap coal power in the first half of the next decade, but also gave some leeway to economies who are heavily coal-reliant, drawing criticism from green groups.

“There is a lot of work to do to ensure that both the 2035 target is met and brought forward to 2030, particularly in Japan, the U.S., and Germany,” said Christine Shearer, Research Analyst, Global Energy Monitor .

Coal power still makes up more than 25% of Germany's electricity and more than 30% of Japan’s power.

Source: Theedgemarkets

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Warren Takunda

Stocks

Economic

December S&P 500 E-Mini futures are down -0.08%, and December Nasdaq 100 E-Mini futures are down -0.09% this morning as market participants looked ahead to remarks from Federal Reserve Chair Jerome Powell and other Fed officials as well as a fresh batch of U.S. labor market data, with a particular focus on Friday’s nonfarm payrolls report.

In Friday’s trading session, Wall Street’s major averages closed mixed. HP Inc. slumped nearly -4% after Bank of America downgraded the stock to Neutral from Buy. Also, chip stocks lost ground, with Marvell Technology sliding more than -3% to lead losers in the Nasdaq 100 and Applied Materials dropping over -2%. In addition, Costco Wholesale fell more than -1% after the company reported weaker-than-expected Q4 revenue. On the bullish side, Wynn Resorts climbed over +7% and was the top percentage gainer on the S&P 500 after Morgan Stanley upgraded the stock to Overweight from Equal Weight with a price target of $104.

Data from the U.S. Department of Commerce released on Friday showed that the core PCE price index, a key inflation gauge monitored by the Fed, came in at +0.1% m/m and +2.7% y/y in August, compared to expectations of +0.2% m/m and +2.7% y/y. Also, U.S. August personal spending rose +0.2% m/m, weaker than expectations of +0.3% m/m, while August personal income grew +0.2% m/m, weaker than expectations of +0.4% m/m. In addition, the University of Michigan U.S. consumer sentiment index was revised upward to a 5-month high of 70.1 in September, stronger than expectations of 69.0.

“Add [Friday’s] PCE price index to the list of economic data landing in a sweet spot,” said Chris Larkin, managing director, trading and investing, at E*Trade. “Inflation continues to keep its head down, and while economic growth may be slowing, there’s no indication it’s falling off a cliff.”

St. Louis Fed President Alberto Musalem stated on Friday that the U.S. central bank should reduce interest rates “gradually” following what he described as the “strong and clear message” of a half-point interest rate cut, which he endorsed. “For me, it’s about easing off the brake at this stage. It’s about making policy gradually less restrictive,” Musalem said in an interview with the Financial Times. If the economy or the labor market deteriorates more than anticipated, he noted, “a faster pace of rate reductions might be appropriate.”

U.S. rate futures have priced in a 58.5% chance of a 25 basis point rate cut and a 41.5% probability of a 50 basis point rate cut at the next central bank meeting in November.

In the coming week, the U.S. Nonfarm Payrolls report for September will be the main highlight. Also, market participants will be eyeing a spate of other economic data releases, including U.S. JOLTs Job Openings, S&P Global Manufacturing PMI, Construction Spending, ISM Manufacturing PMI, ADP Nonfarm Employment Change, Crude Oil Inventories, Initial Jobless Claims, S&P Global Composite PMI, S&P Global Services PMI, Factory Orders, ISM Non-Manufacturing PMI, Average Hourly Earnings, and the Unemployment Rate.

Meanwhile, Fed Chairman Jerome Powell is set to deliver a speech at the annual meeting of the National Association for Business Economics in Nashville later today. A host of other Fed officials will also be making appearances throughout the week, including Bowman, Bostic, Cook, Collins, Barkin, and Williams.

Several notable companies like Nike, Carnival, Paychex, McCormick & Company, and Levi Strauss are slated to release their quarterly results this week.

Today, investors will focus on the U.S. Chicago PMI, which is set to be released in a couple of hours. Economists forecast that the Chicago PMI will stand at 46.1 in September, matching last month’s value.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 3.785%, up +0.89%.

The Euro Stoxx 50 futures are down -0.73% this morning, pressured by a series of profit warnings from automakers, while investors looked ahead to a raft of economic data from the region this week. Automobile stocks led the declines on Monday. The Office for National Statistics said Monday that the British economy grew less than initially anticipated in the second quarter, following a downward revision in government spending and exports. Separately, data showed that Italy’s annual inflation rate eased to 0.7% in September from 1.1% in August, marking the slowest rise in consumer prices since the beginning of the year. Investors’ attention is now on Germany’s preliminary inflation data for September, scheduled for release later in the session. Market participants will also closely monitor Eurozone inflation and PMI data this week. In corporate news, Stellantis NV tumbled over -12% after the Dodge-maker slashed its full-year profit margin forecast due to worsening “global industry dynamics” and increased competition from China. Also, Volkswagen Ag (VOW3.D.DX) slid more than -3% after the carmaker lowered its 2024 guidance.

U.K.’s GDP and Italy’s CPI (preliminary) data were released today.

U.K. GDP has been reported at +0.5% q/q and +0.7% y/y in the second quarter, weaker than expectations of +0.6% q/q and +0.9% y/y.

The Italian September CPI came in at -0.2% m/m and +0.7% y/y, compared to expectations of -0.2% m/m and +0.8% y/y.

Asian stock markets today settled mixed. China’s Shanghai Composite Index (SHCOMP) closed up +8.06%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -4.80%.

China’s Shanghai Composite Index closed sharply higher today, marking its largest one-day gain since 2008 as Beijing’s extensive stimulus package drew foreign, institutional, and retail investors back into the market amid fears of missing out. Property stocks rallied on Monday after China’s central bank announced late Sunday that it would tell banks to reduce mortgage rates for existing home loans by October 31st, as part of comprehensive measures to bolster the country’s struggling property market. Also, Guangzhou on Sunday became the first top-tier city to remove all home purchase restrictions, while Shanghai and Shenzhen announced they would relax curbs on housing purchases by non-local buyers and reduce the minimum downpayment ratio for first-time homebuyers to no less than 15%. Meanwhile, official data released on Monday indicated that Chinese manufacturing activity contracted for the fifth consecutive month in September, albeit at a slower pace than in August, and the gauge of services activity stalled, supporting the argument for more robust policy measures to address deepening economic challenges. Separately, a private survey revealed an unexpected drop in manufacturing activity and a slowdown in services sector growth in September, also indicating economic weakness. In other news, UBS and Nomura increased their year-end targets for China’s major benchmark indices. In corporate news, SolaX Power Network Technology soared about +19% after announcing a 1.05 billion yuan investment plan to construct a large-scale energy storage system as well as a smart energy system.

The Chinese September Manufacturing PMI stood at 49.8, stronger than expectations of 49.4.

The Chinese September Non-Manufacturing PMI came in at 50.0, weaker than expectations of 50.4.

The Chinese September Caixin Manufacturing PMI arrived at 49.3, weaker than expectations of 50.5.

The Chinese September Caixin Services PMI arrived at 50.3, weaker than expectations of 51.6.

Japan’s Nikkei 225 Stock Index closed sharply lower today, marking its biggest drop in eight weeks, dragged down by a sharp rally in the yen as Shigeru Ishiba’s victory in the Japanese ruling party’s leadership race caught investors off guard. Real estate, automobile, and technology stocks led the declines on Monday. Preliminary data from the Ministry of Economy, Trade and Industry released Monday indicated that Japan’s industrial production fell more than anticipated in August, with key sectors such as motor vehicles and electrical machinery contributing significantly to the decline. Separate government data revealed that retail sales in August increased more than expected from a year earlier, marking the 29th consecutive month of growth as rising wages continued to bolster consumption. Meanwhile, 67-year-old Ishiba narrowly secured a victory in the ruling Liberal Democratic Party’s election on Friday to become party leader, and the LDP-controlled parliament is set to convene on Tuesday to elect him as prime minister. Ishiba’s selection prompted investors to scale back positions that had been built on speculation that Takaichi would become Japan’s new prime minister and encourage the Bank of Japan to maintain low interest rates. Ishiba’s support for higher corporate and investment-income taxes presents another challenge for equities. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +6.49% to 28.23.

The Japanese August Industrial Production (preliminary) arrived at -3.3% m/m, weaker than expectations of -0.5% m/m.

The Japanese August Retail Sales came in at +2.8% y/y, stronger than expectations of +2.6% y/y.

The Japanese August Housing Starts stood at -5.1% y/y, weaker than expectations of -3.3% y/y.

Pre-Market U.S. Stock Movers

CVS Health rose over +1% in pre-market trading after the Wall Street Journal reported that hedge fund Glenview Capital Management is scheduled to meet with CVS Health’s top executives on Monday to suggest operational improvements.

Accenture gained about +0.7% in pre-market trading after TD Securities upgraded the stock to Buy from Hold with a price target of $400.

Walt Disney Company advanced more than +1% in pre-market trading after Seaport Research upgraded the stock to Buy from Neutral with a $108 price target.

Ford and General Motors slid over -3% in pre-market trading after Stellantis slashed its 2024 guidance.

Procter & Gamble fell about -1% in pre-market trading after Barclays downgraded the stock to Equal Weight from Overweight with a price target of $163.

Source: BarChart

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Chinese Markets Ride Manufacturing Pmi High

New All-Time High in 'Uptober?' 5 Things to Know in Bitcoin This Week

$64K support retest fails to dent Bitcoin bulls’ confidence

BTC/USD 1-hour chart. Source: TradingView

BTC/USDT 4-hour chart. Source: CrypNuevo/X

BTC liquidation heatmap (Binance). Source: CrypNuevo/X

BTC/USD 1-week chart. Source: Matthew Hyland/X

Markets eye Powell, US unemployment data

Fed target rate probabilities. Source: CME Group

Not such a “Rektember” after all?

BTC/USD monthly returns (screenshot). Source: CoinGlass

Source: BitcoinHyper

Coinbase bounces back

Coinbase app downloads. Source: Bitcoindata21/X

Young whales show their colors

Bitcoin whale realized profits (screenshot). Source: CryptoQuant

Source: Cointelegraph

Budget 2025 Wishlist: Green Bonds, Tax Rebates Will Help Telco Firms to Move into RE — Edotco

Source: The edge markets

US East Coast Port Strike Set to Start Tuesday, Says Union

Source: Theedgemarkets

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Britain to Become First G7 Country to End Coal Power as Last Plant Closes

Source: Theedgemarkets

Stocks Set for Muted Open as Investors Await U.S. Jobs Data and Powell Speech

Source: BarChart

Risk Disclosure