Morning Juice – US Session Prep (23rd September)

Sentiment
Gold’s unprecedented rally pushed higher on efforts by China to bolster its role in global bullion markets. Stocks paused an advance that lifted the S&P 500 to yet another record.

Bullion powered beyond $3,780 an ounce, putting the metal on track for its best month since 2020. The rally gained fresh momentum on Tuesday after reports that the People’s Bank of China is looking to be a custodian of sovereign reserves, courting friendly countries to buy bullion and store it within its borders.

US stock futures traded indecisively early on, repeating a pattern of the past two sessions that gave way to extended rallies.
Nvidia slipped 0.7% premarket after Monday’s jump.

Europe’s Stoxx 600 rose 0.2% after data showed the euro area’s private sector expanded at the fastest pace in 16 months. US Treasuries climbed across the curve, with the 10-year yield slipping one basis point to 4.13%.
The dollar steadied.

Investors are rushing to gold as the prospect of rapid US interest rate cuts enhances the appeal of non-interest-bearing assets.
The metal is also drawing haven demand amid geopolitical upheaval and pressure on the Federal Reserve from the Trump administration to lower rates, stoking fears about inflation.

Traders are awaiting fresh Fed signals ahead of a speech by Chair Powell on Tuesday as earnings season looms as the next big test for stocks.
Coming up as well is the first of three shorter-term debt auctions, beginning with a $69 billion sale of two-year notes.

US stocks are holding gains from a $15 trillion rally since April’s lows, shaking off trade tensions and concerns about stretched valuations as traders bet a dovish Fed will fuel earnings amid excitement over artificial intelligence. The view was reinforced Monday as NVIDIA pledged to invest as much as $100 billion in OpenAI.

Docket
08:30 ET
US Current Account for 2Q
Forecast: -$256.55b | Prior: -$450.2b | Range: -$255b / -$380b

09:40 ET
US S&P PMI Flash for September
Manufacturing – Forecast: 52.2 | Prior: 53 | Range: 53.2 / 50.9
Services – Forecast: 54 | Prior: 54.5 | Range: 55.2 / 53

13:00 ET
US to sell $69 bln 2-Year Notes
Prior High Yield: 3.641%
Prior Bid to Cover: 2.69

Speakers
09:00 ET
Fed’s Bowman is speaking at the 134th Annual Kentucky Bankers Association Convention with a focus on the economic outlook
Text and Q&A expected

09:40 ET
ECB’s Kocher is speaking at a conference of the Austrian financial regulator FMA in Vienna

09:50 ET
Trump Speaks at the UN General Assembly

10:00 ET
Fed’s Bostic is speaking before a Macro Musing podcast with comments on the economic outlook
Q&A expected

10:25 ET
ECB’s Cipollone is speaking at an event in Frankfurt

12:35 ET
Fed’s Chair Powell is speaking on the economic outlook at the Greater Providence Chamber of Crowne Plaza Hotel in Warwick, Rhode Island
Text and Q&A expected

14.15 ET
BoC’s Governor Macklem speech will be published on the BoC’s website, with the topic in focus being the Saskatchewan Trade and Export Partnership (STEP) and the Greater Saskatoon Chamber of Commerce Saskatoon