• GLOBAL CAPITAL MARKETS OVERVIEW:

The three major US stock indexes all record the most significant one-day decline in months. As of the close, the S&P 500 index fell 1.70% to 4357.73 points; the Nasdaq index fell 2.19% to 14711.90 points; the Dow Jones index fell 1.78% to 33970.47 points. From the perspective of industry concepts, airlines and public utilities are among the few sectors that have risen, while uranium, gene editing, and cycle sectors have fallen at the top. Technology leaders in the United States have collectively failed, and their market value has evaporated by hundreds of billions of dollars. Among them, Apple fell 2.14%, Tesla fell 3.86%, Amazon fell 3.08%, Google fell 1.73%, Facebook fell 2.47%, Microsoft fell 1.86%, Qualcomm fell 0.63%, AMD fell 2.24%, and Netflix fell 2.36%. In addition to airlines, the concept of economic restart has weakened. JPMorgan Chase fell 2.99%, Morgan Stanley fell 3.07%, Exxon Mobil fell 2.66%, American Airlines rose 3.04%, United Airlines rose 1.64%, and Delta Air Lines It rose 1.67%, Royal Caribbean Cruises fell 0.99%, Norwegian Cruise Line fell 1.88%, and Boeing fell 1.81%. US Federal Reserve officials will announce their latest estimates at the interest rate meeting on Wednesday. They will reveal when and how often the US economy needs to raise interest rates in the next three years. As a result, investors are ready to speed up the pace of tightening. The Fed publishes a "dot map" every quarter, which shows policymakers' forecasts of economic growth, employment and inflation, and the timing of interest rate hikes without anonymity. The dot plot will show whether most policymakers have adhered to the recently expressed view that the impact of the new crown Delta variant virus on the economy is only short-lived. Instead, the virus currently causes turbulence and uncertainty and weakens economic activity. This week’s dot plot will also show for the first time Fed officials’ expectations for 2024. Since the beginning of the new crown epidemic, interest rates have been close to zero, and the Fed has promised not to raise borrowing costs until the economy has fully recovered. According to the latest framework of the Federal Reserve, this means that while achieving the 2% average inflation target, more attention will be paid to reaching maximum employment. The Fed’s September 21-22 policy meeting is expected to open the door to reduce its monthly debt purchases. Federal Reserve officials believe that even if employment and product supply are restricted, demand directly affected by the asset purchase plan has rebounded, and the program has produced results. The reduction in debt purchases may be completed as early as mid-2022, clearing the way for the Fed to raise interest rates from near zero at any time after that. In September, analysts interviewed by the Reuters survey predicted that US interest rates will remain near zero until 2023. Still, more than a quarter of respondents indicate that the Fed will raise interest rates next year. Suppose the Fed's median interest rate forecasts for 2022 and 2023 remain unchanged. In that case, investors will focus on 2024 because once the interest rate hike begins, investors will analyze the rate of interest rate hikes. The forecast will also show how many policymakers, if any, believe that interest rates will remain unchanged until at least 2024. for example, on June, 5 out of 18 decision-makers believed that interest rates would remain unmoved before the end of 2023. Currently, federal funds rate futures, which track short-term interest rate expectations, show that there will be one rate hike in 2023 and one or two more rate hikes in 2024, but the latest survey of primary market traders indicates that there will be three more rate hikes. The Fed conducts this survey before each meeting to understand market expectations. On Monday, the Canadian stock market was lower, with declines in health care, clean technology, and energy leading stock indexes lower. At the close in Toronto, Canada, the Toronto S&P/TSX Composite Index fell 2.24%, a record low in nearly one month. The best performing stock in the Canadian Toronto S&P/TSX Composite Index is WPT Industrial Real Estate Investment Trust, which rose 2.76% (0.74 points) to a closing price of 27.51. At the same time, Barrick Gold Corporation rose 2.01% (0.47 points) to close at 23.85; Centerra Gold Inc rose 1.97% (0.18 points) to close at 9.31 in late trading. The weakest stock on the disk was NFI Group Inc, which fell 22.94% (6.85 points) and closed at 23.01. Lithium Americas Corp fell 12.26% (3.69 points) to close at 26.40; NexGen Energy Ltd. fell 11.33% (0.750 points) to 5.870 at the close. On the Toronto Stock Exchange, 940 stocks declined, more than the number of rising stocks-128, while 71 stocks remained unchanged, basically unchanged. The Stoxx Europe 50 Index tests the short-term black upward trend line, pointing to the 4000 marks. If it stops falling at the integer mark, it may still fluctuate up to 4100 and 4200. If it breaks below 4000, it will risk selling and may decline to 3000-3500 again. The German DAX index fell sharply below 15,800, and the trend is still on the downside. Resistance moved down from 15800 to 15300, and support was at 14900-15000. 14900 is the 200-day moving average position. If this line is lost, it is expected to build the top, and it will return to high shocks if it stops falling at a critical position. Asian stock markets fell on Monday, and the US dollar strengthened. Several central banks will meet this week. Among them, the Federal Reserve may take another step toward reducing stimulus. Japan, China, and South Korea are holidaying, the market conditions are quiet, and the elections in Canada and Germany will be held this week, bringing additional uncertainty. The fate of the Chinese real estate giant Evergrande 3333.HK and its $300 billion debt are still unclear. On Thursday, Evergrande will have a bond interest due. Concerns about the health of the Chinese economy and the Chinese government's remediation of technology companies continue to plague the region. The Hong Kong stock market.HSI tumbled more than 3% to its lowest level in nearly 11 months. The MSCI Asia Pacific (except Japan) index fell by 2.5% last week and continued to fall by 1.4% today. The Australian stock market.AXJO fell 1.5%. Japanese stocks closed today, but the Nikkei stock index futures than Friday Nikkei Index .N225 closing price out of 400 points. Japanese stocks may begin consolidation after hitting a 30-year high, as they hope the new prime minister will introduce more stimulus measures and make policy adjustments.

 

• REVIEWING ECONOMIC DATA:

Looking at the last economic data:

- CN: International investor concerns about the impact of China Evergrande's default continue to grow. The company has hired consultants to restructure its debt, which promises to be the largest in Chinese history. According to our estimates, holders of Evergrande Eurobonds can expect a recovery from 0% to 25%. However, structural problems may arise due to China Evergrande's difficulties quickly meeting its $ 290 billion domestic liabilities.

- CN: Apple officially pushed the official version of iOS 15 to users around the world, providing multiple new features, including FaceTime audio and portrait mode, notification summary collection, three-dimensional maps, live text, and more.

- US: The market is awaiting the meeting of the FOMC interest rate committee, which will take place on September 21-22. We believe that the regulator at this meeting should concretize the prospects for starting the curtailment of the quantitative easing program until the end of 2021.

- US: After being threatened by the SEC's prosecution, the US cryptocurrency trading platform Coinbase announced after the market last Friday that it would stop advancing the "account-generating" project, which allows users to lend stable currency USDC positions and obtain an annualized income of 4%. Affected by this development and the sharp drop in cryptocurrencies on Monday, Coinbase fell by more than 5% during the day and finally closed down 3.53%.

- US: General Motors announced on Monday that the battery replacement work for the Chevrolet Bolt electric vehicle recalled due to a battery fire hazard will begin next month. GM said that LG Chem's plant in Michigan had produced batteries following the upgraded process. In addition to sending out new battery modules to dealers from mid-October, GM also plans to launch software for monitoring battery health in the next 60 days.

- US: The White House announced plans to open the entry of most foreign adults who have completed vaccinations starting from "early November." Although this plan's specific details and implementation plan have yet to be clarified, it is enough to stimulate airlines to excel in the background of Monday's market crash. As of the close, American Airlines rose 3.04%, Delta Air Lines rose 1.67%, and United Airlines rose 1.64%. These are also the top three gainers among the S&P 500 stocks today.

- US: According to local media on Monday, citing people familiar with the matter and related documents, the US SEC is investigating Activision Blizzard’s response to team member sexual harassment and discrimination complaints in the workplace. Additionally, it is reported that US securities regulators have issued subpoenas to executives, including the company and CEO Bobby Kotick. Affected by this news, Activision Blizzard fell 4.25% to hit a new low in nearly a year.

- GB: British American Tobacco plans to issue two tranches of perpetual junior EUR subordinated Eurobonds with call options in 5.25 years and eight years. We see a fair return on the tranche with a call in 5.25 years in the range of 2.5% -2.9%, with a call option in 8 years - 3.0% -3.6%.

- EU: The yield benchmark for European series 001P-04 bonds is set at the G-curve value for 2.2 years + no more than 225 bp. The benchmark provides for a premium of about 30-40 bp. to a fair level

 

• LOOKING AHEAD:

Today, investors will receive:

- USD: Building Permits, Current Account, and Housing Starts.

- GBP: Public Sector Net Borrowing, and CBI Industrial Order Expectations.

- CHF: Trade Balance.

- CAD: NHPI m/m.

- CNY: CB Leading Index m/m.

- AUD: CB Leading Index m/m, MI Leading Index m/m, and RBA Assist Gov Bullock Speaks

- JPY: Monetary Policy Statement, and BOJ Policy Rate.

 

• KEY EQUITY & BOND MARKET DRIVERS:

- 15% of the S&P 500 component stocks rose, and 85% fell in price.

- Apple's (AAPL) shares lost 2.1% despite solid preorder volumes for the iPhone Pro and Pro Max. In China, the new iPhone is expected to sell cheaper than the iPhone 12. According to the company's 2020 earnings, China is Apple's third-largest sales region with a 15% revenue share, so smartphone sales in that country significantly impact the overall business. Apple. This year in China, the iPhone took advantage of Huawei's inability to deliver equally technically compelling smartphones: Huawei's high-end models do not include 5G as the company continues to operate under US trade sanctions and has a limited supply of necessary components;

- BeyondSpring Pharmaceuticals (BYSI) shares fell 17% after the presentation of the results of the third phase of research on a drug against cancer;

- Shares of Chinese companies fell in price on the US stock exchanges amid growing concerns about the real estate market in the Middle Kingdom;

- Shares of companies related to cryptocurrencies fell in price against the background of a sharp decline in bitcoin and other cryptocurrencies;

- Edesa Biotech (EDSA) added 35.3% after the company announced that experts recommend continuing the third phase of its drug trials;

- Shares in European travel-related companies have risen significantly after the FT announced that, starting in November, vaccinated passengers will be allowed to travel between the US / EU / UK;

- Tesla (TSLA) shares lost 3.8% amid general market weakness. In addition, the US authorities urged the company to improve the safety of its electric vehicles before further developing the autopilot system.

- The market is still digesting the impact of U.S. retail sales data. Although the CPI announced last Tuesday in the U.S. has slowed, inflationary pressures have not abated. The robust U.S. retail sales data make the market believe that the Fed cuts QE urgently. Push the dollar higher.

- The order book for bonds "First Collection Bureau" (PKB) series 001Р-02 worth up to 1.5 billion rubles will be tentatively opened on September 22. The benchmark of 11.2% per annum is at the upper limit of the yield of all ruble bonds with a BBB + rating

- As the second half of September entered, the market began to consider the issue of the US debt ceiling. The U.S. House of Representatives ended its summer recess this week. The most important thing is how to prevent the government from closing on October 1st, when the new fiscal year begins and how to resolve the imminent debt ceiling issue. Since 2019, the U.S. debt ceiling has been suspended for two years and resumed its effect in early August this year. If the debt ceiling is not broken or raised again, the U.S. Treasury Department will be forced to default on the part of its debt by then. The House of Representatives may enact legislation including "continuing resolutions" and suspension of debt ceilings, but the Senate is more uncertain. If the bill cannot be advanced, Democrats may be forced to remove the wording of the debt ceiling and pass an independent "continuing resolution" to avoid a government shutdown.

 

• STOCK MARKET SECTORS:

- High: Utilities.

- Low: Energy, Financials, Materials, Information Technology.

 

• TOP CURRENCY MARKET DRIVERS:

- CURRENCY MARKET OVERVIEW: U.S. dollar index continued its strong strength since retail sales in the United States on Friday, breaking through the previous high of 92.92 in one fell swoop, setting a new three-week high due to solid data support. The market expects that the Fed may announce a cut in QE this week. The euro expanded its decline, and the downward momentum remained intact. The pound also fell for two consecutive days, with a cumulative decline of more than 100 points. USD/JPY stabilized from above the 200-day moving average and re-pointed to near 110.40, the August consolidation high. Among the commodity currencies, the Australian and New Zealand dollar have seen an explicit correction. Still, even though the US dollar/Canadian dollar is re-pointing to a high level, it is possible to brew a large-scale topping pattern. The dollar and the yen are strengthening against their main competitors. Hawk-biased dot plots in the Fed forecast update could spur US currency appreciation. Emerging Market' currencies are getting cheaper. The ruble retains growth potential and should look better than most competitors.

- OIL: International oil prices fell further, as the U.S. dollar index rose to a new high in more than three weeks and the number of rigs in the United States increased. Although nearly a quarter of the U.S. Gulf of Mexico’s oil production capacity was After the two hurricanes, it is still in a state of suspension. Experts believe that a strong U.S. dollar makes U.S. dollar-denominated oil more expensive for holders of other currencies, thus dampening demand. Analysts said in a report: "WTI crude oil may consolidate in the next few trading days until the dollar trend becomes clearer." Researchers from ING International Group said in a report released on Monday that in the past, The strengthening of the US dollar in a few days has brought some resistance to the market. In addition, if the Fed announced this week to reduce the scale of debt purchases, it may bring new downward pressure on oil and the broader commodity complex. But the agency added that such measures are more likely to be implemented in November. As major oil-producing countries eased production cuts, Saudi Arabia, the world's largest oil exporter, maintained its position as China's largest crude oil supplier for the ninth consecutive month in August. Daily-level, US crude oil continued to fall. On the one hand, the oil production capacity in the Gulf of Mexico continued to recover. On the other hand, the strengthening of the US dollar also dampened the confidence of oil price bulls.

 

• CHART OF THE DAY:

Spot gold rebounded after hitting a low of more than five weeks, but the bearish trend remained unchanged. The bears are paying close attention to the Fed’s policy meeting this week to prepare for the Fed’s other signal to reduce bond purchases. Some economists believe that people's attention to the discussion of reducing the scale of debt purchases has been overdone. Experts expect Fed officials to keep their options open. That is, if job growth rebounds and the risk of the epidemic subsides, they will be prepared to decide to reduce bond purchases at the November policy meeting as soon as possible and push the price of gold further down. Still, if the epidemic hinders recovery, They can also postpone reducing debt purchases, and the cost of gold may not drop to $1,700 in the short term. On the other hand, if the Fed sends a strong signal that the US monetary policy is ending the crisis mode, and will lead people to focus on the next stage of the debate-when does inflation require the Fed to raise the current near-zero federal funds rate, it will give gold The market brings a new round of selling pressure. At the daily level, the price of gold continued to fall within the day and once fell below the 23.6% retracement level of 1743, showing that the bears still took the initiative to control the disk after the sharp drop in the price of gold last Thursday. From a technical point of view, the cost of gold is below the moving average of each cycle. The MACD crosses downwards. However, we need to beware of the oversold signals displayed by RSI. Experts believe that this Wednesday will welcome the Fed's interest rate decision, and the price of gold may continue to be under pressure before then. If the interest rate decision is unexpectedly dovish, gold prices will usher in breathing space.• Gold - D1, Resistance (target zone) around ~ 1792 and 1827, Support (target zone) around ~ 1743, and 1673

 

• GLOBAL CAPITAL MARKETS OVERVIEW: The three major US stock indexes all record the most significant one-day decline in months. As of the close, the S&P 500 index fell 1.70% to 4357.73 points; the Nasdaq index fell 2.19% to 14711.90 points; the Dow Jones index fell 1.78% to 33970.47 points. From the perspective of industry concepts, airlines and public utilities are among the few sectors that have risen, while uranium, gene editing, and cycle sectors have fallen at the top. Technology leaders in the United States have collectively failed, and their market value has evaporated by hundreds of billions of dollars. Among them, Apple fell 2.14%, Tesla fell 3.86%, Amazon fell 3.08%, Google fell 1.73%, Facebook fell 2.47%, Microsoft fell 1.86%, Qualcomm fell 0.63%, AMD fell 2.24%, and Netflix fell 2.36%. In addition to airlines, the concept of economic restart has weakened. JPMorgan Chase fell 2.99%, Morgan Stanley fell 3.07%, Exxon Mobil fell 2.66%, American Airlines rose 3.04%, United Airlines rose 1.64%, and Delta Air Lines It rose 1.67%, Royal Caribbean Cruises fell 0.99%, Norwegian Cruise Line fell 1.88%, and Boeing fell 1.81%. US Federal Reserve officials will announce their latest estimates at the interest rate meeting on Wednesday. They will reveal when and how often the US economy needs to raise interest rates in the next three years. As a result, investors are ready to speed up the pace of tightening. The Fed publishes a "dot map" every quarter, which shows policymakers' forecasts of economic growth, employment and inflation, and the timing of interest rate hikes without anonymity. The dot plot will show whether most policymakers have adhered to the recently expressed view that the impact of the new crown Delta variant virus on the economy is only short-lived. Instead, the virus currently causes turbulence and uncertainty and weakens economic activity. This week’s dot plot will also show for the first time Fed officials’ expectations for 2024. Since the beginning of the new crown epidemic, interest rates have been close to zero, and the Fed has promised not to raise borrowing costs until the economy has fully recovered. According to the latest framework of the Federal Reserve, this means that while achieving the 2% average inflation target, more attention will be paid to reaching maximum employment. The Fed’s September 21-22 policy meeting is expected to open the door to reduce its monthly debt purchases. Federal Reserve officials believe that even if employment and product supply are restricted, demand directly affected by the asset purchase plan has rebounded, and the program has produced results. The reduction in debt purchases may be completed as early as mid-2022, clearing the way for the Fed to raise interest rates from near zero at any time after that. In September, analysts interviewed by the Reuters survey predicted that US interest rates will remain near zero until 2023. Still, more than a quarter of respondents indicate that the Fed will raise interest rates next year. Suppose the Fed's median interest rate forecasts for 2022 and 2023 remain unchanged. In that case, investors will focus on 2024 because once the interest rate hike begins, investors will analyze the rate of interest rate hikes. The forecast will also show how many policymakers, if any, believe that interest rates will remain unchanged until at least 2024. for example, on June, 5 out of 18 decision-makers believed that interest rates would remain unmoved before the end of 2023. Currently, federal funds rate futures, which track short-term interest rate expectations, show that there will be one rate hike in 2023 and one or two more rate hikes in 2024, but the latest survey of primary market traders indicates that there will be three more rate hikes. The Fed conducts this survey before each meeting to understand market expectations. On Monday, the Canadian stock market was lower, with declines in health care, clean technology, and energy leading stock indexes lower. At the close in Toronto, Canada, the Toronto S&P/TSX Composite Index fell 2.24%, a record low in nearly one month. The best performing stock in the Canadian Toronto S&P/TSX Composite Index is WPT Industrial Real Estate Investment Trust, which rose 2.76% (0.74 points) to a closing price of 27.51. At the same time, Barrick Gold Corporation rose 2.01% (0.47 points) to close at 23.85; Centerra Gold Inc rose 1.97% (0.18 points) to close at 9.31 in late trading. The weakest stock on the disk was NFI Group Inc, which fell 22.94% (6.85 points) and closed at 23.01. Lithium Americas Corp fell 12.26% (3.69 points) to close at 26.40; NexGen Energy Ltd. fell 11.33% (0.750 points) to 5.870 at the close. On the Toronto Stock Exchange, 940 stocks declined, more than the number of rising stocks-128, while 71 stocks remained unchanged, basically unchanged. The Stoxx Europe 50 Index tests the short-term black upward trend line, pointing to the 4000 marks. If it stops falling at the integer mark, it may still fluctuate up to 4100 and 4200. If it breaks below 4000, it will risk selling and may decline to 3000-3500 again. The German DAX index fell sharply below 15,800, and the trend is still on the downside. Resistance moved down from 15800 to 15300, and support was at 14900-15000. 14900 is the 200-day moving average position. If this line is lost, it is expected to build the top, and it will return to high shocks if it stops falling at a critical position. Asian stock markets fell on Monday, and the US dollar strengthened. Several central banks will meet this week. Among them, the Federal Reserve may take another step toward reducing stimulus. Japan, China, and South Korea are holidaying, the market conditions are quiet, and the elections in Canada and Germany will be held this week, bringing additional uncertainty. The fate of the Chinese real estate giant Evergrande 3333.HK and its $300 billion debt are still unclear. On Thursday, Evergrande will have a bond interest due. Concerns about the health of the Chinese economy and the Chinese government's remediation of technology companies continue to plague the region. The Hong Kong stock market.HSI tumbled more than 3% to its lowest level in nearly 11 months. The MSCI Asia Pacific (except Japan) index fell by 2.5% last week and continued to fall by 1.4% today. The Australian stock market.AXJO fell 1.5%. Japanese stocks closed today, but the Nikkei stock index futures than Friday Nikkei Index .N225 closing price out of 400 points. Japanese stocks may begin consolidation after hitting a 30-year high, as they hope the new prime minister will introduce more stimulus measures and make policy adjustments.   • REVIEWING ECONOMIC DATA: Looking at the last economic data: - CN: International investor concerns about the impact of China Evergrande's default continue to grow. The company has hired consultants to restructure its debt, which promises to be the largest in Chinese history. According to our estimates, holders of Evergrande Eurobonds can expect a recovery from 0% to 25%. However, structural problems may arise due to China Evergrande's difficulties quickly meeting its $ 290 billion domestic liabilities. - CN: Apple officially pushed the official version of iOS 15 to users around the world, providing multiple new features, including FaceTime audio and portrait mode, notification summary collection, three-dimensional maps, live text, and more. - US: The market is awaiting the meeting of the FOMC interest rate committee, which will take place on September 21-22. We believe that the regulator at this meeting should concretize the prospects for starting the curtailment of the quantitative easing program until the end of 2021. - US: After being threatened by the SEC's prosecution, the US cryptocurrency trading platform Coinbase announced after the market last Friday that it would stop advancing the "account-generating" project, which allows users to lend stable currency USDC positions and obtain an annualized income of 4%. Affected by this development and the sharp drop in cryptocurrencies on Monday, Coinbase fell by more than 5% during the day and finally closed down 3.53%. - US: General Motors announced on Monday that the battery replacement work for the Chevrolet Bolt electric vehicle recalled due to a battery fire hazard will begin next month. GM said that LG Chem's plant in Michigan had produced batteries following the upgraded process. In addition to sending out new battery modules to dealers from mid-October, GM also plans to launch software for monitoring battery health in the next 60 days. - US: The White House announced plans to open the entry of most foreign adults who have completed vaccinations starting from "early November." Although this plan's specific details and implementation plan have yet to be clarified, it is enough to stimulate airlines to excel in the background of Monday's market crash. As of the close, American Airlines rose 3.04%, Delta Air Lines rose 1.67%, and United Airlines rose 1.64%. These are also the top three gainers among the S&P 500 stocks today. - US: According to local media on Monday, citing people familiar with the matter and related documents, the US SEC is investigating Activision Blizzard’s response to team member sexual harassment and discrimination complaints in the workplace. Additionally, it is reported that US securities regulators have issued subpoenas to executives, including the company and CEO Bobby Kotick. Affected by this news, Activision Blizzard fell 4.25% to hit a new low in nearly a year. - GB: British American Tobacco plans to issue two tranches of perpetual junior EUR subordinated Eurobonds with call options in 5.25 years and eight years. We see a fair return on the tranche with a call in 5.25 years in the range of 2.5% -2.9%, with a call option in 8 years - 3.0% -3.6%. - EU: The yield benchmark for European series 001P-04 bonds is set at the G-curve value for 2.2 years + no more than 225 bp. The benchmark provides for a premium of about 30-40 bp. to a fair level   • LOOKING AHEAD: Today, investors will receive: - USD: Building Permits, Current Account, and Housing Starts. - GBP: Public Sector Net Borrowing, and CBI Industrial Order Expectations. - CHF: Trade Balance. - CAD: NHPI m/m. - CNY: CB Leading Index m/m. - AUD: CB Leading Index m/m, MI Leading Index m/m, and RBA Assist Gov Bullock Speaks - JPY: Monetary Policy Statement, and BOJ Policy Rate.   • KEY EQUITY & BOND MARKET DRIVERS: - 15% of the S&P 500 component stocks rose, and 85% fell in price. - Apple's (AAPL) shares lost 2.1% despite solid preorder volumes for the iPhone Pro and Pro Max. In China, the new iPhone is expected to sell cheaper than the iPhone 12. According to the company's 2020 earnings, China is Apple's third-largest sales region with a 15% revenue share, so smartphone sales in that country significantly impact the overall business. Apple. This year in China, the iPhone took advantage of Huawei's inability to deliver equally technically compelling smartphones: Huawei's high-end models do not include 5G as the company continues to operate under US trade sanctions and has a limited supply of necessary components; - BeyondSpring Pharmaceuticals (BYSI) shares fell 17% after the presentation of the results of the third phase of research on a drug against cancer; - Shares of Chinese companies fell in price on the US stock exchanges amid growing concerns about the real estate market in the Middle Kingdom; - Shares of companies related to cryptocurrencies fell in price against the background of a sharp decline in bitcoin and other cryptocurrencies; - Edesa Biotech (EDSA) added 35.3% after the company announced that experts recommend continuing the third phase of its drug trials; - Shares in European travel-related companies have risen significantly after the FT announced that, starting in November, vaccinated passengers will be allowed to travel between the US / EU / UK; - Tesla (TSLA) shares lost 3.8% amid general market weakness. In addition, the US authorities urged the company to improve the safety of its electric vehicles before further developing the autopilot system. - The market is still digesting the impact of U.S. retail sales data. Although the CPI announced last Tuesday in the U.S. has slowed, inflationary pressures have not abated. The robust U.S. retail sales data make the market believe that the Fed cuts QE urgently. Push the dollar higher. - The order book for bonds "First Collection Bureau" (PKB) series 001Р-02 worth up to 1.5 billion rubles will be tentatively opened on September 22. The benchmark of 11.2% per annum is at the upper limit of the yield of all ruble bonds with a BBB + rating - As the second half of September entered, the market began to consider the issue of the US debt ceiling. The U.S. House of Representatives ended its summer recess this week. The most important thing is how to prevent the government from closing on October 1st, when the new fiscal year begins and how to resolve the imminent debt ceiling issue. Since 2019, the U.S. debt ceiling has been suspended for two years and resumed its effect in early August this year. If the debt ceiling is not broken or raised again, the U.S. Treasury Department will be forced to default on the part of its debt by then. The House of Representatives may enact legislation including "continuing resolutions" and suspension of debt ceilings, but the Senate is more uncertain. If the bill cannot be advanced, Democrats may be forced to remove the wording of the debt ceiling and pass an independent "continuing resolution" to avoid a government shutdown.   • STOCK MARKET SECTORS: - High: Utilities. - Low: Energy, Financials, Materials, Information Technology.   • TOP CURRENCY MARKET DRIVERS: - CURRENCY MARKET OVERVIEW: U.S. dollar index continued its strong strength since retail sales in the United States on Friday, breaking through the previous high of 92.92 in one fell swoop, setting a new three-week high due to solid data support. The market expects that the Fed may announce a cut in QE this week. The euro expanded its decline, and the downward momentum remained intact. The pound also fell for two consecutive days, with a cumulative decline of more than 100 points. USD/JPY stabilized from above the 200-day moving average and re-pointed to near 110.40, the August consolidation high. Among the commodity currencies, the Australian and New Zealand dollar have seen an explicit correction. Still, even though the US dollar/Canadian dollar is re-pointing to a high level, it is possible to brew a large-scale topping pattern. The dollar and the yen are strengthening against their main competitors. Hawk-biased dot plots in the Fed forecast update could spur US currency appreciation. Emerging Market' currencies are getting cheaper. The ruble retains growth potential and should look better than most competitors. - OIL: International oil prices fell further, as the U.S. dollar index rose to a new high in more than three weeks and the number of rigs in the United States increased. Although nearly a quarter of the U.S. Gulf of Mexico’s oil production capacity was After the two hurricanes, it is still in a state of suspension. Experts believe that a strong U.S. dollar makes U.S. dollar-denominated oil more expensive for holders of other currencies, thus dampening demand. Analysts said in a report: "WTI crude oil may consolidate in the next few trading days until the dollar trend becomes clearer." Researchers from ING International Group said in a report released on Monday that in the past, The strengthening of the US dollar in a few days has brought some resistance to the market. In addition, if the Fed announced this week to reduce the scale of debt purchases, it may bring new downward pressure on oil and the broader commodity complex. But the agency added that such measures are more likely to be implemented in November. As major oil-producing countries eased production cuts, Saudi Arabia, the world's largest oil exporter, maintained its position as China's largest crude oil supplier for the ninth consecutive month in August. Daily-level, US crude oil continued to fall. On the one hand, the oil production capacity in the Gulf of Mexico continued to recover. On the other hand, the strengthening of the US dollar also dampened the confidence of oil price bulls.   • CHART OF THE DAY: Spot gold rebounded after hitting a low of more than five weeks, but the bearish trend remained unchanged. The bears are paying close attention to the Fed’s policy meeting this week to prepare for the Fed’s other signal to reduce bond purchases. Some economists believe that people's attention to the discussion of reducing the scale of debt purchases has been overdone. Experts expect Fed officials to keep their options open. That is, if job growth rebounds and the risk of the epidemic subsides, they will be prepared to decide to reduce bond purchases at the November policy meeting as soon as possible and push the price of gold further down. Still, if the epidemic hinders recovery, They can also postpone reducing debt purchases, and the cost of gold may not drop to $1,700 in the short term. On the other hand, if the Fed sends a strong signal that the US monetary policy is ending the crisis mode, and will lead people to focus on the next stage of the debate-when does inflation require the Fed to raise the current near-zero federal funds rate, it will give gold The market brings a new round of selling pressure. At the daily level, the price of gold continued to fall within the day and once fell below the 23.6% retracement level of 1743, showing that the bears still took the initiative to control the disk after the sharp drop in the price of gold last Thursday. From a technical point of view, the cost of gold is below the moving average of each cycle. The MACD crosses downwards. However, we need to beware of the oversold signals displayed by RSI. Experts believe that this Wednesday will welcome the Fed's interest rate decision, and the price of gold may continue to be under pressure before then. If the interest rate decision is unexpectedly dovish, gold prices will usher in breathing space.• Gold - D1, Resistance (target zone) around ~ 1792 and 1827, Support (target zone) around ~ 1743, and 1673