Stocks climbed on Friday, following a report that China Evergrande Group was preparing to pay interest payment due on bond, though concerns over inflation has raised speculation that central banks will increase interest rates, potentially crimping growth.

The dollar headed for its weekly decline versus most major peers, as traders turned their attention to when the Fed will start raising interest rates. Improved market sentiment, commodity prices and bond yields, are also weighing on the safe-haven dollar.

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Equities started the October on the back foot, tumbled on Friday, as risk sentiment soured amid mounting fears about slowing economic growth, elevated inflation, supply-chain bottlenecks, a global energy crunch and regulatory risks emanating from China.

The dollar headed for its weekly gains against its major peers, picking up speed, fueled by a hawkish tilt from the Federal Reserve, rising Treasury yields and concerns over the possibility of a drawn-out battle to raise the U.S. debt ceiling.

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Shares steadied in Friday trading but are on course for a its weekly drop, subdued by worries about the global economic recovery, impact of the Delta strain, implications of elevated inflation and the upheavals in China.

Oil on track to to post fourth weekly gains, while gold were set for a second weekly loss.

The dollar meanwhile held it overnight gains after a raft of strong U.S. economic data rekindled expectations of an earlier policy tightening by the U.S. Federal Reserve. The FOMC’s 2-day policy meeting is due to be held on Sept. 21–22 and could provide clues as to when the U.S. central bank will start withdrawing its asset purchases.

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Zulbahri Muhammad

Chief Analyst at Golden Brokers. https://goldenbrokers.my/en/blog

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