Daily Market Commentary 30th October 2023

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The war in Israel appears to be escalating and threatening stability in the region and around the world. The Ukraine war also marches on, and these conflicts are disrupting production and supply, with further escalation threatening global markets. The impact on markets has been extremely negative, with equities crashing and bond yields on the rise. This coming week will be important on the Geo-Political front but also on the economic data front. There is a plethora of data releases, including multiple inflation and growth readings, across Europe and Central Bank rate decisions. The Bank of Japan, The Federal Reserve and the Bank of England are all reviewing their latest rate decisions, although none are expected to lift rates. All three Central Banks are expected to drive intense speculation and volatility. The market attention will also be focused on key US employment reports, culminating in the Non-Farm Payrolls, scheduled to be released on Friday. The EUR trades below 1.0600, to close out the week, while the GBP tries to hold above 1.2100.

Commodity prices are firming, with all of the Geo-Political uncertainty, so the commodity currencies have been able to hold onto albeit low levels. The AUD has consolidated above 0.6300, while the NZD has attempted to hold above 0.5800. There is a lot of local economic data releases, in the coming week, but markets will be firmly focused on offshore Geo-Political and economic issues.

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