Financial Markets Daily Report17 October 2023
Investor sentiment improved amid diplomatic efforts to avoid the Israeli-Hamas conflict from spreading in the Middle East, with US Secretary of State Blinken arriving in Israel for talks and both President Biden and German chancellor Scholz planning a visit later this week.
- Investor sentiment improved amid diplomatic efforts to avoid the Israeli-Hamas conflict from spreading in the Middle East, with US Secretary of State Blinken arriving in Israel for talks and both President Biden and German chancellor Scholz planning a visit later this week.
- In this context, stock indices rallied in the US and rose modestly in the euro area. Asian stocks fell as investors await China's 3Q GDP data on Wednesday. Sovereign bond yields advanced most notably in the US and, in the euro area, periphery risk premia edged lower despite Italy's approval of a new fiscal plan which will drive up the deficit.
- In commodities, crude prices lost ground and fell below $90 per barrel, and gold, which had been ralliying as a safe asset, also saw losses. The US dollar weakened leaving the euro around $1.056. Beyond monitoring the developments in the Middle East, investors will be looking at 3Q earning reports to better gauge the state of the global economy.