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Below is the daily global market update 06 October 2021 By Team Kristal.AI

“Rebound Risk sentiment rebounded after Equities reversed some of their recent declines. SPX gained a percentage point on the day to close just shy of the 4350 level, with Financials leading the way for a change. Tech recovered from its slump in the prior session and Energy was bid with Crude gaining another 1.7% on the day after OPEC+ did not upsize the predetermined supply increases for Nov at their monthly meeting. Defensive sectors like Utilities and Real Estate were in the red. Japan's recent rally appears to have lost recent momentum though, with declines over multiple consecutive sessions.

The US yield curve steepened (indicative of positive sentiment) with the 10Y a couple of basis points above the 1.5% mark and the 30Y just shy of 2.1%. The US dollar was stronger on the day but FX moves relatively muted. Volatility here came off after the prior session's increases and the VIX heading back towards 20 as well. Commodities continued their bull run with the Bloomberg Commodity Index hitting a new record and robust shipping demand for industrial commodities like Coal and Iron Ore remain consistent with the optimistic mood.

Crypto traded up with Bitcoin finally breaking above the 50k mark and EU Carbon credits hit new high, making the cost for power plants to switch from Natural Gas to Coal that much higher. Risks still abound though - there will likely be another vote on the US Debt ceiling today in the Senate, which the Reps have said they will block. In China, Fantasia's default has intensified the selloff in the Chinese Real Estate sector but it is possible that the state of clears up some of the uncertainty around Evergrande ahead of market open on Friday.

Services PMIs for Oct were broadly positive yesterday and a 25 bps hike is expected from RBNZ this morning, to counter rising inflation and household debt. US Crude inventories later in the day should give us a better sense of the supply picture there.”

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