Risk-off markets and heavy selling pressure in equities - ANZ

In a market wrap, analysts at ANZ Bank New Zealand Ltd explained that equities were under heavy selling pressure with the S&P down 1% at the time of writing as earnings reports weighed. 

Key Quotes:

"That brought the month’s losses for the index to almost 7%, nearly erasing YTD gains, now just 1.5%."

"Although beating expectations, Caterpillar’s failure to raise its earnings estimates for this year weighed heavily on sentiment as did earlier weakness in Asia."

"Investors are concerned that the lack of an upward earnings revision by Caterpillar (often viewed as a bellwether stock) may be signalling a slowdown in demand. The firm confirmed that its Q3 order book was $400m lower than in Q2, that higher tariffs cost it $40m in Q3, and that it will raise prices 1-4% in an effort to compensate. 3M posted its first sales miss in two years and FX translation added to the downward earnings guidance."

"Bonds rallied with US yields down around 3-6bps across the curve."

"Key European equities closed in the red, down 1.2-2.1%."

"Oil fell after Saudi Arabia reassured markets that it would meet customer demand."

"WTI dropped 3.6%; gold rose 1.0%."