Daily Market Commentary 10th October 2023

A war in Israel exploded over the weekend, causing turmoil on the Middle East and adding to the global disruptions. War is an uncertainty and markets do not like uncertainty. This is on top of the Ukraine war and the Coups in North Africa. Oil prices headed back up, as did gold prices, while questions remain over the scale and impact of the War between Hamas and Israel and if it is likely to spread to other Middle Eastern nations? US Markets were quiet, as it is the Columbus Day long weekend, although European markets traded negative, following further weak Industrial Production data. The USD was steady, with the EUR trading 1.0530, while the GBP drifted back to 1.2200.  

The Geo-Political crises hardly dented the local bond and currency markets, with the AUD trading around 0.6400, while the NZD looks to regain 0.6000. Markets will further digest events when the US re-opens.