September got off to a slow start with low volumes and profitability in the first two weeks. Things picked up considerably in the third week where most of the months strong profitability was focused. Revenues were primarily driven by a broad USD rally with Gold, EURUSD, and GBPUSD being showing the largest gains. The final week of September began with steep price declines in in those same instruments, but markets retraced by the end of the period.

*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

ASIA

The Chinese government’s goal of 5.5 percent GDP growth in 2022 appears to be almost certainly out of reach as the country’s economy continues to face headwinds. The government has reaffirmed its commitment to a zero-covid policy which continues to damage economic activity in a number of sectors. In addition, the continuing crisis in the country’s housing market has slowed growth in that sector. The Chinese Communist Party’s National Congress will convene in October where Xi Jinping is expected to be named to an additional 5-year term as leader.

EUROPE

The UK economy was sent into turmoil following the announcement of several proposed tax cuts in September. Following the announcement, the pound fell to a record low against the dollar and borrowing costs soaring to their highest level in over a decade. As a result, the Bank of England intervened to address a “material risk” to the UK economy and announced emergency bond purchases to stabilize markets.

AMERICAS

Inflation remains the focus of policymakers in the US as actions taken thus far have done little to bring prices down. The Federal Reserve has vowed to continue hiking interest rates until the issue is brought under control. Rates have already been brought from near zero to over 3 percent in 2022 and additional actions are projected to bring the figure to the 4.5 percent range by the end of the year.

 

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