[Market Morning] Risk Assets Continued to Revel Before the CPI Announcement, the US Index plunged , and Silver Once Soared 6%!

On Monday, spot gold rose and fell back. After the US market rose to a daily high of 1735.03, it gave up most of its previous gains, fell below the $1730 mark, and finally closed up 0.43% at $1727.47 per ounce; spot silver once soared 6% in the day. % broke through the $20 mark and finally closed up 4.99% at $19.78 per ounce.

Comment: Gold jumped about 1% on Monday, and silver rose more than 5%, supported by a weaker dollar as investors awaited key inflation data for clues on the Federal Reserve's rate hikes.

Suggestion: short spot gold at 1725.28 position, the target point 1711.24.

The US dollar index dived sharply in the European market, once fell below the 108 mark, and finally closed down 0.62% at 108.29; the 10-year US bond yield fell first and then rose, and finally closed up 1.11% at 3.358%.

Comment: After recent strong gains, the dollar fell to its lowest level in more than two weeks against a basket of currencies on Monday. Investors grew nervous ahead of US inflation data and central banks outside the US appeared increasingly hawkish. The euro climbed to a more than three-week high against the dollar as European Central Bank officials advocated for more aggressive currency tightening.

Suggestion: Long EUR/USD at 1.01250 position, the target point 1.01956.

In terms of crude oil, the two oil prices rose more than 3% in intraday trading. WTI crude oil rebounded before the European market, rising to a high of US$89.04 per barrel, and finally closed up 2.15% at US$88.04 per barrel; Brent crude oil finally closed up 2.27% at US$94.20 per barrel.

Comment: Oil prices closed higher on Monday, shrugging off weak demand expectations as supply concerns intensify as winter approaches. US Strategic Petroleum Reserve inventories fell by 8.4 million barrels to 434.1 million barrels in the week ended Sept. 9, the lowest level since October 1984, data from the US Department of Energy (DOE) showed on Monday.

Suggestion: short the US crude oil at 87.700 position, the target point is 85.671

The Dow closed up 0.71%, the Nasdaq closed up 1.27%, and the S&P 500 closed up 1.06%. Most of the popular Chinese concept stocks closed higher, NIO closed up about 14%, Bilibili closed up about 4%, and Alibaba closed up about 3%.

Comment: US stocks extended their winning streak and ended sharply higher on Monday as investors awaited key inflation data that could shed light on the duration and aggressiveness of the Federal Reserve's tightening policy. Energy and technology shares helped the three major U.S. stock indexes hit two-week highs and rose for a fourth straight session, with growth stocks slightly favored over value stocks.

Suggestion: Long Nasdaq index at 12773.600 position, target point 12955.630.

US Latest Research: The new crown virus has removed at least 500,000 people from the US labor market.

According to the "Wall Street Journal" report, the latest research found that the disease caused by the new crown virus has reduced the US labor force by about 500,000 people. If the current virus infection rate continues, the US labor force will continue to be cut. According to research, millions of people have left the workforce during the Covid-19 pandemic for various reasons, including retirement, lack of childcare, and fears of Covid-19. If the US continues to maintain current levels of new crown infections, it is expected to lose more labor. Some economists see the slow recovery of the US labor force and high demand for workers as one of the major challenges facing the US economy, limiting employers' ability to provide goods and services and exacerbating price pressures. Experts say addressing this imbalance is crucial to reducing high inflation.

Norway's PM: Gas price cap will not solve Europe's gas shortage

Norwegian Prime Minister Jonas Gal Steller said on the 12th that Norway would have a closer dialogue with the European Union on natural gas supply. Still, Norway is skeptical about the measure of natural gas price caps. Norway is not a member of the European Union. Before the Ukraine crisis, 40% of the natural gas used in the EU came from Russia and 20% to 25% from Norway. Norway has become the EU's largest gas supplier after Russia recently slashed gas supplies to the EU.

EU proposes revenue caps for several generators.

According to a draft EU document, the EU's executive body plans to impose price caps on electricity market revenue for the following types of energy producers. They are wind, solar, geothermal, nuclear, hydro, and other energy producers. The document said the price cap would not apply to "demonstration projects or producers whose electricity generation revenue is capped as a result of state measures." The market speculates that the price cap will also not apply to equipment generating up to 20 kilowatts. The price cap level has not been specified in the draft.