- Wall Street indices launched today's trading lower but has managed to recover from the drops later on. S&P 500 trades 0.5% higher, Nasdaq gains 0.4% and Dow Jones adds 0.3%
- European stock market indices finished today's trading higher - German DAX gained 0.6%, French CAC 40 added almost 0.9% while Italian FTSE MIB rallied 1.5%. UK FTSE 100 was a laggard, dropping 0.1%
- Bank of Japan left interest rates unchanged at a meeting today. However, the bank said that there is no explicit ceiling for 10-year Japanese government yield, signalling that it may allow it to move above 1%
- JPY weakened following the decision as market's hopes were for a more hawkish move, especially after Nikkei suggested that band may be widened to 150 basis points
- USDJPY jumped to 151.50 - the highest level in around a year
- ECB Stournaras said that he would consider rate cuts if inflation permanently and sustainably falls below 3% by mid-2024
- ECB Kazaks said that the door should always be open to hikes if needed and that there is no need to discuss interest rate cuts now. Kazaks said that a rate cut would need a dramatic turnaround in the economy
- ECB Villeroy said that state of the economy fully justifies end of interest rate hikes
- ECB Nagel said that while inflation has fallen significantly, it is still too high. Nagel said that it is not yet possible to say whether rates have already reached peak
- Euro area CPI inflation slowed from 4.3% YoY in September to 2.9% YoY in October (exp. 3.1% YoY)
- Euro area GDP declined 0.1% QoQ in Q3 2023 (exp. 0.0% QoQ)
- German retail sales dropped 0.8% MoM in September (exp. +0.5% MoM)
- US Conference Board consumer confidence index dropped from 103.0 in September to 102.6 in October (exp. 100.1)
- Canadian economy stagnated in August for the second month in a row (0.0% MoM growth) while analysts expected a 0.1% MoM expansion
- Chinese manufacturing PMI index dropped from 50.2 to 49.5 in October (exp. 50.2) while services gauge dropped from 51.7 to 50.6 (exp. 51.8)
- Japanese industrial production increased 0.2% MoM in September (exp. 2.6% MoM)
- Japanese retail sales increased 5.8% YoY in September (exp. 6.0% YoY)
- Cryptocurrencies pull back - Bitcoin drops 0.2%, Ethereum trades 0.3% lower and Dogecoin slumps 2.4%
- Energy commodities trade mixed - oil drops over 1.5% while US natural gas prices surge 7%
- Precious metals are trading lower amid USD strengthening - gold drops 0.6%, silver trades 2% lower and platinum declines 0.1%
- USD and GBP are the best performing major currencies while JPY and CHF lag the most
GOLD is pulling back from $2,000 per ounce area as USD gains and yields resume climb. Source: xStation5
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