In a market wrap, analysts at ANZ New Zealand Bank explained that financial markets were generally stable overnight, despite weakness in Asian markets yesterday.
Key Quotes:
"The USD underperformed on the back of trade tensions and soft US retail sales."
"Despite the soft data, the US 10-year note was unchanged."
"The S&P 500 was up 0.1% at the time of writing, with stability in Treasuries playing into calmer equity markets."
"Sterling underperformed on Brexit news."
"European equities also recovered lost ground and the DAX ended the day up 0.8% with the FTSE up 0.5%."
"Commodity prices were generally higher."
"Oil rose 0.2% to USD71.5/bbl."
"Gold rose 0.8%.
A LITTLE SOFTER:
"US headline retail sales data for September rose 0.1% m/m, while ex-auto sales were down 0.1% m/m. The control group rose 0.5% m/m. However, the data were likely affected by Hurricane Florence. In particular, auto sales were impacted by the severe weather and restaurant receipts slumped. Nevertheless, underlying momentum in spending appears to be intact. Consumer confidence and wage gains suggest consumption growth will remain elevated through Q4. We have yet to see how resilient retail sales will be to price increases as a result of tariffs."
A LITTLE FIRMER:
"US Empire manufacturing (the first of the October manufacturing indicators) was a little firmer than expected, rising to 21.1 from 20.0 (compared with 19.0 expected). New orders climbed to 22.5 from 16.5 with shipments increasing to 26.3 from 14.3. The labour components were weaker with employment dipping to 9 from 13.3."
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