Will this mark a recovery from the global stock market slump?

Will this mark a recovery from the global stock market slump?

21.09.2021

Yesterday, the three major U.S. stock indices all fell further, leading to a risk-off market characterized by falling stock prices, lower interest rates, and cheaper crude oil. Bonds were bought, and the yield on the 10-year U.S. Treasury note fell to 1.32%. The default risk surrounding China Evergrande Group, a major Chinese real estate developer, spread, triggering a global stock market sell-off.The VIX (fear index) has surged to 23.5. Gold has rebounded and is trading in the $1,764 range.

While the foreign exchange market is showing a slight trend toward a stronger yen, European currencies and the U.S. dollar are locked in a stalemate ahead of tomorrow’s FOMC meeting, with the EUR/USD pair increasingly stuck in a range between 1.170 and 1.175. However, the euro is holding firm against the pound; ignoring the pound’s sharp decline yesterday, the EUR/GBP pair has risen from 0.853 to 0.859.

Today’s schedule includes the Swiss trade balance at 3:00 PM, Japanese machine tool orders at 3:00 PM, the UK CBI Business Survey at 7:00 PM, U.S. housing starts, building permits, and the second-quarter current account balance at 9:30 PM, and the U.S. 20-year Treasury auction at 2:00 AM.With Chinese markets closed, risk-off sentiment has intensified sharply recently, and we will be closely monitoring how the foreign exchange market moves in the latter half of September.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed