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Below is the daily global market update 08 October 2021 By Team Kristal.AI

“Risk On into NFP

Asian equities rallied yesterday led by HK, which gained over 3% after another selloff in the first week of the month. The rally continued into Europe, with debt joining equities in significant moves higher. Most developed and EM currencies were bid against the US Dollar and FX vol was notably lower from the prior day's levels. The positive risk sentiment spilled over into the US session to as SPX opened higher following the news around vote on the deferment of the debt ceiling until Dec. The index traded mostly sideways and closed marginally below the 4440 level with all sectors in the green except Utilities. Close the 80% of the constituents traded up on the day in a strong showing.

Some of the prior session's selloff in Crude and Natural gas was reversed as the US Department of Energy confirmed it had no imminent plans to release any part of the strategic reserves. Europe's demand for natural gas is also likely to be met by increased output from Gazprom. Commodities had another up day in what is turning out to a good week. Gold remains range bound but Palladium did see a 3.8% move higher overnight. Crypto was mixed as Bitcoin fell back to the 55k support but Ethereum moved ahead to the 3.6k level now.

Ahead today, the main event will be the US NFP number for September. Expectations here are of 500k jobs added in the month  and the unemployment rate ticking lower to 5.1% from 5.2% earlier. The tapering of the Fed's asset purchases is set to commence later in the year and with the move higher in US yields overnight, this looks like the consensus expectation. The US 10Y moved up 5 bps the 1.58% level now. We also have a rate decision from the RBI where a hold at 4% is expected.”

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