Financial Markets Daily Report24 October 2023
The week started off with a volatile session as markets await key economic data this week (PMIs for advanced economies and US 3Q GDP), 3Q euro area Bank Lending Survey, the ECB's rate decision, further 3Q earnings, and news from the Middle East.
- The week started off with a volatile session as markets await key economic data this week (PMIs for advanced economies and US 3Q GDP), 3Q euro area Bank Lending Survey, the ECB's rate decision, further 3Q earnings, and news from the Middle East.
- In the US, the 10Y treasury yield rose to hit the 5% mark as investors continue to expect high rates for longer, but finished the day lower falling 6 bps. The moves in treasuries dragged down equity indices and the S&P 500 closed at its lowest level since May. Euro area sovereign yields fell and equity indices were mixed.
- The US dollar depreciated against major currencies and the euro rose to $1.067. In commodities, the price of the barrel of Brent traded below $90 responding to diplomatic advances in Gaza. Today the focus will be on the release of October flash PMIs for advanced countries which will give investors further clues of the state of the economies.