JASPER’S MARKET SQUAWK 24-10-2023
<h2>Tech Gains Momentum from Falling Yields</h2>
<p>Equities ended Monday mixed, with growth-focused Nasdaq up from falling yields. The market was on edge until the 10-year yield breached 5%, only to reverse, taking the dollar down and letting counterparts get a boost. Meanwhile, UAW workers walked out of the Stelantis plant.</p>
<p><img decoding="async" fetchpriority="high" class="aligncenter wp-image-26507 size-full" src="https://www.keytomarkets.com/blog/wp-content/uploads/2023/10/Untitled-design-1-2.png" alt="" width="1913" height="912" srcset="https://www.keytomarkets.com/blog/wp-content/uploads/2023/10/Untitled-design-1-2.png 1913w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/10/Untitled-design-1-2-300×143.png 300w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/10/Untitled-design-1-2-1024×488.png 1024w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/10/Untitled-design-1-2-768×366.png 768w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/10/Untitled-design-1-2-1536×732.png 1536w" sizes="(max-width: 1913px) 100vw, 1913px" /></p>
<p>Chart: EURUSD</p>
<h2>Key Factors for Today</h2>
<ul>
<li>Nasdaq Breaks 4-Day Losing Streak as Oil Prices Slump, Boosting Growth Stocks</li>
<li>WTI Falls 2.15% as Ground Invasion Delay Eases Tensions, 2 Hostages Released</li>
<li>Investors Expect ECB to Hold For Longer Amidst High Inflation and Stagnation</li>
<li>BOJ Condudts Unscheduled Intervention for 5th Time in Three Months</li>
</ul>
<h2>Nasdaq Ends 4-Day Losing Streak, Supported by Oil Slump</h2>
<p>The 10-year yield rose to a 16-year high of 5.021% early Monday due to the ongoing “higher-for-longer” narrative, weighing on risk assets. However, it turned sharply following a tumble in oil prices. Easing inflation concerns boosted growth stocks ahead of earnings reports, sending Nasdaq to 14650 despite a volatile bond session. 14420 and 14760 remain critical for short-term price action.</p>
<h2>WTI Loses 2.15% on Invasion Delay After Hostage Release</h2>
<p>Continuous talks between Israel and Hamas led to the release of two additional hostages to hold off a ground invasion of Gaza, leading to a 2.15% drop in oil prices to $86 a barrel. The commodity fell despite two of the largest oil and gas producers securing notable acquisitions as China refineries also saw inventory draws of about 240K bpd in September. $83.40/bbl is the next support, with resistance fixed at the weekly open of $87.90 for now.</p>
<h2>Majority of Investors Expect ECB to Hold… For Longer</h2>
<p>Investors expect the European Central Bank (ECB) to pause due to economic stagnation but keep rates at or above current rates for longer. Meanwhile, consumer confidence in the EU fell by 10bps in October month-on-month but beat estimates of -18.3. Consumer sentiment stayed intact at -18.7. EUR/USD got a 0.70% boost from a bleeding dollar as fears of US government spending got out of hand. The pair captured $1.0669 and is poised to reclaim $1.07 unless bulls lose $1.0641.</p>
<h2>BOJ Invervenes in Bond Market for 5th Time Since July</h2>
<p>The Bank of Japan (BOJ) conducted an unscheduled bond-buying operation for the 5th time since July in an overnight effort to curb rising yields. The recent surge in yields pressures the BOJ to consider raising the newly set cap, with growing speculation of a policy adjustment at its Oct 31 meeting. The announcement guided yen higher, easing USD/JPY to 149.49 in Tuesday’s session and exposing 149.31.</p>
<h2>On The Docket</h2>
<ul>
<li>DE GfK Consumer Confidence</li>
<li>UK Employment Change, Unemployment</li>
<li>FR Manufacturing, Services PMIs</li>
<li>DE Manufacturing, Services PMIs</li>
<li>RBA Bullock SPeech</li>
<li>EA Manufacturing, Services PMIs</li>
<li>GB Manufacturing, Services PMIs</li>
<li>CBI Business Optimism</li>
<li>CBI Industrial Trends Orders</li>
<li>ECB President Lagarde Speech</li>
<li>S&P Global Manufacturing, Services PMIs</li>
<li>API Crude Oil Stock Change</li>
</ul>
<h2>FX 1-Day Relative Performance (USD)</h2>
<ul>
<li>Aussie and Kiwi 0.28% and 0.09% up</li>
<li>Euro 0.09% higher, Pound up by 0.12%</li>
<li>Loonie up by 0.08%, Franc unchanged</li>
<li>Japanese yen 0.02% in the red zone</li>
<li>Gold 0.04% down, while Silver up by 0.15%</li>
<li>Crude up by 0.35%, Brent 0.32% higher</li>
<li>Natural gas lower at negative 0.99%</li>
</ul>
<p>The post <a rel="nofollow" href="https://www.keytomarkets.com/blog/analysis/market-analysis/jaspers-market-squawk-24-10-2023-26506/">JASPER’S MARKET SQUAWK 24-10-2023</a> appeared first on <a rel="nofollow" href="https://www.keytomarkets.com/blog">Key To Markets Blog</a>.</p>
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