Headlines:
- Gold ratchets higher, seeks break of key technical levels
- US president Biden arrives in Israel
- Biden: US will make sure Israel has what it needs to defend itself
- OPEC+ not planning extraordinary meeting after Iran calls for Israel oil embargo - report
- Xi-Putin meeting: Close political coordination is necessary in current difficult times
- Fed's Harker: Pause on rate hikes should be extended
- ECB's Visco: Inflation not yet consistent with monetary, price stability
- UK September CPI +6.7% vs +6.6% y/y expected
- Eurozone September final CPI +4.3% vs +4.3% y/y prelim
- US MBA mortgage applications w.e. 13 October -6.9% vs +0.6% prior
- Japan tourism recovers to near pre-Covid levels
- Nomura revises China 2023 GDP growth forecast slightly higher
- Citi raises China 2023 GDP growth forecast to 5.3% from 5.0% previously
- UBS, Morgan Stanley join the chorus in raising China GDP growth forecast for the year
Markets:
- CHF leads, EUR lags on the day
- European equities lower; S&P 500 futures down 0.4%
- US 10-year yields down 3 bps to 4.817%
- Gold up 1.1% to $1,945.52
- WTI crude up 2.7% to $89.02
- Bitcoin down 0.2% to $28,405
The arrival of US president Biden is Israel is not really relieving tensions in the region, at least not yet, as commodities continue to respond to the heightened uncertainty. Gold is shooting higher as it climbs to a four-week high of $1,947 after a solid jump higher since Asia trading.
Oil is the other key beneficiary with WTI crude up nearly 3% on the day to $89, also building on gains since Asia trading.
But outside of the commodities space, the market moves were more measured. Equities are feeling heavy again with US futures down 0.4% while European indices are dragged down as well, not helped by ASML's poor showing after its earnings report earlier.
That comes despite a moderation in Treasury yields, with 10-year yields nudging back down to 4.817% after hovering around 4.866% at the highs earlier in the session.
In FX, major currencies are looking more muted. The pound caught a mild bid after more signs of stubborn UK inflation, with GBP/USD moving up from 1.2185 to 1.2210 before keeping around 1.2190 levels now.
The dollar in general is steadier across the board as it trades little changed against the rest of the major currencies bloc, as sentiment is still underpinned from higher yields and a stronger US economy for the time being.
