Morning wrap (10.10.2023)

• Wall Street indexes closed yesterday's session in positive sentiment despite initial signs of weakness. The S&P500 rose 0.63%, the Nasdaq100 gained 0.49% and the DIJA gained 0.69% - sentiment was supported by statements from Fed members that intensified the narrative of keeping rates unchanged
• Workers at General Motors' Canadian factories went on strike, contract negotiations with the union representing some 4,300 workers failed to reach an agreement
• Goldman Sachs forecasts a headline US CPI reading of 3.8% in December 2023 
• Hamas has expressed willingness to negotiate peace with Israel but fighting continues - terrorists have threatened to execute civilians if Israel continues to bomb civilian facilities
• JP Morgan commented impact Middle East conflict on oil and now expect short term spikes in prices to continue  over medium term while becoming more sustained 
• 10-year Treasury bond yields fell 16 basis points to 4.63% in response to increased bets that the Fed will keep the cycle at current levels - Australian or New Zealand bond yields also lost ground
• European index futures are pointing to a likely higher opening after a 'green' Asian session
• Dutch CPI inflation showed a decline y/y to 0.2% compared to 3% previously, with a monthly dynamics of -0.4% (previously 0.4%). At the same time, consumer spending increased by 0.5% y/y compared to 0.4% previously
• Asian indexes had a successful session during which China's Hang Seng rose more than 1.3% and Japan's Nikkei index gained 2.5%. At the same time, however, Korea's KOSPI lost 0.24%
• New credits in China economy for September came in 1,36 trillion CNY vs 2,5 trillion CNY expected 
• The economic observers' index of Japan's economy surprised with a drop to 49.9 points vs. 53.2 forecast and 53.6 points previously
• Australian NAB business sentiment readings disappointed slightly to the downside. The Business Sentiment Reading was 1 vs. 2 previously and the Current Conditions Score was 11 vs. 13 previously
• Dollar index futures (USDIDX) are trading at a slight 0.05% gain, EURUSD is seeing limited volatility and losing just 0.02%
• Precious metals are trading flat today, with silver losing 0.45% and gold recording minimal volatility
• Oil is under pressure and losing 0.5%. Natural gas futures contracts are down more than 1%
• Bitcoin is still trading at $27,600 and respecting a key resistance zone at $28,000. Cryptocurrency market sentiments are mixed and probably will be weak until Bitcoin price is below 200 DMA
• International Monetary Fund summit begins today

Source: xStation5