Stock as well as bond market are moving higher at the end of the quarter. GER30 and UK100 are up 0.7% and 0.8% respectively, after the Hang Seng bounced 2.7%. US futures are also posting gains, and yields are coming down. The German 10-year rate has corrected -5.1 bp, the 10-year Gilt yield is down -3.9 bp and the US 10-year rate has dropped -2.4 bp.
- USDIndex reverted to 105.54 from 106.50 giving the Yen some breathing room amid intervention concerns. The USDJPY slide to 148.50 has put investors on high alert for the risk of intervention. But Japanese authorities could find propping up their currency both difficult to achieve and hard to justify. (Reuters)
- Stocks up on the last trading day of the Q3 amid optimism over spending during China’s Golden Week holiday and on talks of a possible meeting between US and China leaders.
- UK: Q2 GDP was confirmed at 0.2% q/q & German retail sales unexpectedly correct again coupled with weak consumer confidence readings.
- US: Tight reading on jobless claims, a mixed GDP report & US mortgage rates at the highest level since 2000, as elevated interest rates and climbing bond yields push up borrowing costs.
- Gold at $1858, braced for their biggest monthly fall since February.
Today: The key US PCE but a partial government shutdown is looming, which could affect the release of any economic data.
Interesting Mover: USDJPY (-0.40%) pulled back to 148.50, after a rally closed to the 150 level. However, key support remains at 148.00
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Andria Pichidi
Market Analyst
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