Sunday, October 1, 2023
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Marketmind: After a manic week, TGIF

Anshuman Daga’s outlook for the future of European and global markets

Friday will be a slow day.

Well, kinda. Stocks are still licking their wounds, U.S. bond yields are at 11 year highs and the dollar hovers near 20-year highs. [MKTS/GLOB]

Still, investors may have had enough this week, with the Fed raising interest rates by 75 basis points as expected, leaving the market Shocked by a thought-provoking prospect.

The Bank of Japan took “decisive” action to intervene in foreign exchange markets for the first time since 1998 to support the battered yen.

Many central banks, including the UK, Switzerland and Norway, raised interest rates this week, with no sign that borrowing costs are near their peaks.

The latest warning comes from ECB board member Isabel Schnabel, who said inflation will rise further and price growth may be more persistent than previously thought.

While the ECB has raised interest rates 125 in the last two meetings to fight inflation, the basis has hovered at %, the market has already priced in more gains.

More bad news from the UK.

UK consumer confidence plunged to its lowest level on record 1970, putting more pressure on new Finance Minister Kwasi Kwarteng to Families provide additional support, which may be detrimental to gilts.

Preliminary data on global business activity is also due on Friday, which is expected to show the global economy is heading for a recession.

Meanwhile, this is a sign to ease the pressure on arrivals, the government will provide information on the relaxation of the controversial COVID-19 for all arrivals 19 Update on hotel quarantine policies.

Japanese intervention supports weak yen

Central Banks step up their efforts to fight inflation

Key developments that could affect markets on Friday:

Economic Data – Quick Estimates of PMIs for Major Economies

Standard & Poor’s Review of Germany’s Credit Ratings



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