September and The worst quarter since 2011


Current ending quarter can be classified as the worst since at least 2011. We have seen gains on the stock markets, straightening of the US dollar and increasing commodity prices at yesterday’s session.

Eventually, these movements were unable to overcome even a fraction of the losses of the passing quarter. Wednesday is a second consecutive day of a rebound on global markets as copper prices rally on the news of Glencore cutting output in Chile and China  heads for a week-long holidays. US data was mixed but a general feeling is positive for the USD ahead of the payrolls report on Friday.
Glencore rebounded for a second day as the company said production would be cut to save costs. This helped spark a rally on industrial commodities, especially copper which rose slightly below 4% today. German DAX30 rallied as well with all companies within the index advancing.

There was no fundamental change for the markets so one may wonder how long will this rebound last. China heading for a week-long holidays may help stabilize the markets for a while but will not address issues that caused a sell-off in the first place. During "Gold Week" all factories are closed, but shops and malls are open even longer than normal day, so retail industry is gearing up to billions of dollars from citizens and tourists.

Oil price is mixed yesterday as DOE report shows a build in inventories , but Bloomberg survey indicates a decline of OPEC production in September, which may be the first sign of supply adapting to concerns about demands. 
US Congress adopted a bill that would get the government funded for another 2 months to avoid a shutdown. This brought a little relief for market which gains at the end of yesterdays’s session.
Inflation data from euro zone showed a return to negative zone  which may trigger expectations for further easing from ECB.