The dollar continued to rise, sending the euro to a 20-year low and the offshore yuan to an all-time low. US Federal Reserve Chairman Jerome Powell will get another chance to either calm or scare the market after he squandered the opportunity on Tuesday. The pound sterling fell and then reversed as the country’s authorities were forced to intervene. Apple shares tumbled in premarket trading on reports that the company has abandoned a planned increase in iPhone production this year due to weak demand. Biogen has a new Alzheimer’s drug that seems to work better than the previous one. Russian gas pipelines have reportedly been sabotaged. U.S. oil inventories are due Wednesday after a sharp rise in inventories, a private agency said Tuesday. Here’s what you need to know about the financial market on Wednesday, September 28th.

Rising US bond yields pushed dollar to new highs; Powell to speak

The dollar rose to a new high as pressure from rising US interest rates on the global economy continues to intensify.

Yields on 10-year Treasury bonds topped 4% for the first time since 2010, sparking a rally in the short-term bond market, where the 2-year bond yield is 4.25%, reflecting expectations that the US Federal Reserve will not be able to significantly reduce interest rate until 2024.

Fed Chairman Jerome Powell will speak a little later today at 10:15 ET (1415 GMT), and will likely outshine his colleagues Rafael Bostic and James Bullard, who are due to speak earlier.

Notable outsiders in the foreign exchange market included the euro, which fell to a new 20-year low of 0.9538, as well as the offshore yuan, which fell to a new all-time low, and the pound sterling, which fell again after the International Monetary Fund condemned unfunded tax benefits from the new UK government. It later recovered as the Bank of England said it would intervene to bring the bond market back to normal.

Shares of Apple and its suppliers in the fall on the news of the refusal to increase production

Shares of Apple (NASDAQ:AAPL) fell 3.7% after Bloomberg reported that the company abandoned plans to increase iPhone production this year after expected growth in demand failed to materialize. At the beginning of the year, it was reported that the company expected to produce 6 million more units of its new iPhone 14.

The world’s most popular consumer durable is facing budget tightening constraints, casting doubt on Apple’s ability to achieve significant increases in average selling prices.

Shares in iPhone component suppliers such as Qualcomm (NASDAQ:QCOM) and STMicroelectronics (NYSE:STM) also fell in premarket trading.

The American market will open mixed; Biogen’s New Alzheimer’s Drug Soothes Apple Disappointment

The US stock market will open again mixed after a similar trading day on Tuesday; however, the ongoing collapse in the bond market and news from Apple have a strong influence on sentiment.

By 6:20 AM ET (1020 GMT), Dow Jones futures were up a modest 44 points, or 0.1%, while S&P 500 futures were flat and Nasdaq 100 futures were down 0. ,four%; with Apple’s news hitting the chip maker sector and the broader technology sector in particular.

One stock that has dramatically reversed the trend is Biogen Inc (NASDAQ:BIIB) after the first significant results from clinical trials of its newest Alzheimer’s drug showed it significantly slowed the progression of the disease. The news gives Biogen a chance to redeem itself after the controversial approval of its latest Alzheimer’s drug Aduhelm.

Alleged sabotage on pipelines

The alleged sabotage of Russian gas pipelines earlier this week effectively eliminated the chances of resuming direct gas supplies to Germany, as well as creating a danger to shipping and leading to a large-scale release of a powerful greenhouse gas into the Earth’s atmosphere.

Swedish and Danish seismologists identified 2 separate explosions, each of which was the equivalent of 100 kg of dynamite, leading governments to conclude that the pipelines had been deliberately attacked.

European natural gas hub prices rose sharply this week, not only because of this alleged diversion, but also because of Gazprom (MCX:GAZP)’s announcement on Tuesday that it could stop paying Ukraine for the transit of its gas, which will practically stop gas supplies to the EU in connection with the start of the key winter heating season.