Trading volumes in September recovered from the lows seen in August, but profits remained suppressed. There were small bursts of volatility during the month, but prices often retraced in the following days and reversed much of the gains. The drops in gold and indices on the 16th and 20th respectively drove profits for most brokers.
*Average Daily Volume represents the daily volume from ISRA customers for each day of the month divided by the average daily volume for the month. Each day is represented as a percent of the average.
** Average Daily B Book PnL represents the daily B Book PnL from ISRA customers for each day of the month divided by the average daily B Book PnL for the month. Each day is represented as a percent of the average.
Source: IS Risk Analytics Database. Past Performance is not necessarily indicative of future results
Economic news out of China has been focused on the property sector in recent weeks. Property developer Evergrande’s debt crisis appears to not have been isolated and additional real estate firms have now exhibited symptoms of strained cash flows that have led to ratings downgrades. China has also been forced to ration electricity in certain parts of the country as a result of a surge in energy use and a shortage of coal.
Following a late September election, Angela Merkel is set to be replaced as chancellor of Germany after a term of 16 years. The formation of a new government could take weeks or months, but it currently appears that the Social Democratic Party’s Olaf Scholtz will emerge as the new chancellor. Europe has seen its economic recovery accelerate following the easing of lockdown restrictions earlier this year and is now projected to return to pre-crisis GDP levels before the end of the year.
The US congress was unable to pass the infrastructure and build back better legislation packages in September, but both are still being negotiated and congressional leaders and the President are hoping to pass them in October. All eyes are now on the deadline to raise the debt ceiling which is projected to be reached mid-month. Republicans are currently not willing to support the bill leaving the Democrat majority looking for legislative options to pass it on their own.