Markets today regain positive sentiment, marking a respite from the turbulence of recent days.
The pressure is easing from bond markets and all other markets just as the final trading day of another very complex week begins.
The fall in long-term US Treasury bond rates has given Asia-Pacific investors a chance to breathe.
In Europe, after the ECB's pause in raising rates, a positive opening is expected.
In Asia, all indices are closing the session above parity.
US stock futures gain, bucking the trend with closing in the red overnight on Wall Street.
While we await the expected monetary policy verdicts from the Fed, Bank of England and Bank of Japan next week, in focus today are at least 5 key facts not to be missed.
1.
USA, GDP is booming The US economy grew at the fastest pace in two years in the last quarter, thanks above all to the explosion in consumer spending, which will be put to the test in the coming months.
According to the government's preliminary estimate on Thursday, October 26, GDP accelerated at an annualized rate of 4.9%, more than double the pace of the second quarter.
The economy's main growth driver, personal spending, rose 4%, the most since 2021.
This is the latest sign of economic resilience, despite moves by the Federal Reserve to tighten monetary policy and tame inflation .
2.
The ECB takes a break Christine Lagarde announced that, after 10 consecutive increases in the cost of money, Eurozone interest rates remain unchanged, at 4.50% and 4.0% as regards the on deposits.
These are high levels, which could remain so for a long enough period to bring the inflation target to 2%.
The ECB has not hidden that growth in the area is seen as weak and prices, despite the drop in September, could still undergo upward movements due to geopolitical tensions.
Prudence and firmness, therefore, on the part of the central bank.
There is no advance notice, at the moment, of the end of the reinvestments of the proceeds from the bonds purchased under the PEPP, the government bond purchase program during the pandemic.
It will end in 2024.
The prospect of accelerating the closure of the program was already stirring spirits in Europe, given that it could increase pressure on highly indebted countries.
Italy was not mentioned as a “case”.
The result offers Prime Minister Giorgia Meloni a reprieve at a time when investors are wondering whether the country could soon be reduced to rubbish.
3.
Quarterly weight Amazon.com reported revenue and profit that beat analysts' estimates, supported by rising sales at its retail unit and cost cutting.
Amazon Web Services sales fell slightly short of expectations.
Ford Motor Co.'s third-quarter results fell short of expectations.
The automaker withdrew its full-year outlook.
Stocks fell in regular trading Thursday, even as yields on long-term Treasury bonds fell.
The tech-heavy Nasdaq 100 is now down more than 10% from its July peak.
read also Big Tech wipes out $200 billion in market value.
What happen? 4.
5% Attracts Distressed debt investors like the look of 5% Treasury yields as they evaluate the risk-reward scale for the world's largest bond market.
This is a Bloomberg analysis that highlights one of the key themes for the markets.
The rise in yields to levels last seen before the financial crisis reflects a strong run of data, with the U.S.
economy growing last quarter at its fastest pace since 2021.
And a rising tide of debt issuance of the Treasury, meanwhile, pushed the return of a positive risk premium for holding longer-dated bonds.
For all the bond market pain — and some traders are betting there's more to come — the notes look much more attractive to long-term buyers once Treasury yields are at 5% or higher.
read also Middle East, why isn't it worth protecting yourself with gold and oil? 5.
What's happening in the Middle East The Israeli army said it had killed the deputy intelligence chief of Hamas, who was responsible for helping to plan the October 7 attacks.
During the night, the army also carried out a limited ground incursion into northern Gaza with infantry and tanks.
A small number of humanitarian aid trucks reached Gaza on Thursday, but there was no indication that fuel had been provided.
The United Nations, which has said fuel shortages risk blocking relief operations, is trying to ration existing reserves for its facilities, including bakeries and health centers.
Meanwhile, two US fighter jets hit weapons and ammunition depots in Syria in retaliation for attacks on US forces by Iranian-backed militias, as concerns grow that the Israel-Hamas conflict could spread across the Middle East.
Orient.
Oil prices jumped more than 1%.
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