Ipek Ozkardeskaya
Swissquote Bank Ltd
Stocks gained, and bonds fell yesterday on US and allies’ efforts to deescalate tensions in the Middle East. Yet Israel told the US ‘to embrace for a long war’. Gold, US treasuries and franc could rapidly jump in case of further escalation of tensions.
The Gaza situation is not helping to improve relations between the US and China as the US considers further limit China’s – and its military’s - access to advanced chips.
On the data front, the Empire Manufacturing index showed a slower-than-expected contraction in October, and the retail sales data for September will be released today. A strong sales data could boost optimism if the Federal Reserve (Fed) speakers maintain their expectation that the Fed has done hiking the interest rates. But nothing is less sure with the Middle East situation. If oil prices spike to unbearable levels, inflation expectations would take a lift.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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