The U.S. stock market recorded its biggest decline in about four months. Investors' concerns about the Chinese real estate industry and the prospect of the Federal Reserve's underweighting triggered a plunge in global stock markets. The S&P 500 index's closing decline narrowed to 1.7%, and traders bought on dips again after the index rebounded from the closely watched moving average. The S&P 500 index fell by 2.9% during the intraday session, the largest one-day decline since October 2020. The Federal Reserve will hold a monetary policy meeting, and the market expects that policymakers will begin to pave the way for reducing the scale of debt purchases.

Francois Villeroy de Galhau, President of the Bank of France, said that due to supply chain difficulties and high oil and raw material prices, inflation has experienced a temporary spike. “Now that the inflation rate is temporarily higher than the 2% target, I want to emphasize that this is temporary,” he said in a question-and-answer session after a speech at the Institute de France in Paris. "The Eurozone may discuss how long these supply chain bottlenecks will last, so as to make the closest prediction to the decimal point of inflation.

“What we have seen is very consistent with our predictions, and we do see a strong recovery,” Isabel Schnabel, a member of the European Central Bank’s Executive Council, said in a panel discussion. "We must be happy that inflation is rising in the expected direction, which is expected to enable us to achieve the inflation target." When to end the pandemic asset purchase depends on the development of the epidemic, and a decision will be made “in the coming months”. "Even if at some point we decide to stop net purchases of assets under the PEPP plan, we probably have not yet reached the 2% inflation target, so we will have to consider the situation very carefully."

Due to the surplus of funds in the US interest rate market, the Fed's use of reverse repurchase overnight unexpectedly climbed to a record high. On Monday, 77 institutions used the Fed's overnight reverse repurchase agreement to reach $1.224 trillion, surpassing the previous record of $1.218 trillion on September 17. Through the Fed's overnight reverse repurchase tool, money market funds, etc. can deposit cash in the central bank.

Confidence among US homebuilders climbed in September due to falling timber prices and strong housing demand. According to data released by the National Association of Home Builders (NAHB)/Wells Fargo on Monday, the builders confidence index climbed for the first time in five months, from 75 in August to 76. Bloomberg survey economists expect the median value to drop slightly to 74. While builders are respite from falling raw material prices, the real estate market remains strong and housing prices continue to rise. NAHB stated that housing affordability will be a key challenge in the coming quarters.

El Salvador is doubling its bet on Bitcoin, which is currently falling. Its president stated that “if you buy on dips, you will never be defeated.” President Nayib Bukele wrote on Twitter that, taking advantage of Bitcoin's recent decline, El Salvador bought another 150 Bitcoins, bringing the total to 700. It made the above comments on Sunday evening, and the decline of Bitcoin accelerated on Monday.

Coinbase Global Inc. succumbed to pressure from U.S. regulators and shelved plans to launch a cryptocurrency loan project. The company quietly announced the shelving of the project in a blog last Friday, after the US Securities and Exchange Commission (SEC) threatened to sue the company. This also marks a sharp change in Coinbase's attitude. On September 7, the company's executives posted a provocative blog on social media, publicizing their conflict with the SEC.

Risk Warning: The above content is for reference only, and does not represent JRFX’s position. JRFX does not assume any form of loss caused by any trading carried out in accordance with this article. Please consult your financial planner for your investment portfolios and manage your own risk.

JRFX is an online CFD broker providing more than 50 products for Forex, metals and commodities. Open a trading account within a minute. Deposit 100USD and download our MT4 trading platform now!