The deficit on energy resources increases ahead of the winter season

Some Congress members have raised the Fed’s issue of ending the QE program as a condition for a budget deal.

Boeing received a $23.8 billion contract from the US Department of Defense.

According to Bloomberg Economics, Eurozone inflation data for September is likely to be pessimistic. Inflation is expected to be clearly above the European Central Bank’s 2% target in all major economies in the region. German inflation accelerated to 4.1% in September from 3.9% in August, the highest rate since 1993. In September, inflation in France and Italy also accelerated as households in the Eurozone’s two largest economies faced a jump in energy prices. Unemployment in the Eurozone fell to 7.5% in August. European natural gas and electricity prices jumped to record highs, signaling that supply shortages will only worsen before the winter.

Oil is rising as potential demand growth caused by the global energy crisis counteracts the impact of the crisis on the overall economy. According to preliminary data, OPEC+ is considering throwing more oil on the market at next week’s meeting because of a strong deficit.

Gold is on the way to its biggest monthly loss since June, as the prospect of stimulus cuts pressures the precious metals. Yesterday, gold and silver increased sharply amid a temporary drop in US government bond yields.

Manufacturing activity in Asia rebounded in September after some countries eased restrictions associated with the Covid-19 virus. In Asia, all resources for the electricity generation, including gas, coal, and water) are in short supply, and the situation doesn’t seem to improve anytime soon. Asian stock indices are falling due to increasing inflation concerns. Australian stocks decreased more than 2%, South Korea’s Kospi is down 1.5%, and the MSCI Asia Pacific Index decreased by 1.1%. Japan’s Nikkei 225 index lost more than 2%.

Japan’s next prime minister, Fumio Kishida, may have no choice but to sell most government bonds worth hundreds of billions of dollars to finance the pandemic package.