Daily Alert – Tuesday 17th October 2023: Markets calm as Biden heads to Israel

Mark NugentDaily Alert, October 2023

Daily Alert – Tuesday 17th October 2023: Markets calm as Biden heads to Israel

Good afternoon.

What’s happening? Well, US Retail Sales beat expectations, showing the continued resilience of the US economy. The people are still spending, despite the eleven hikes from the Fed.

Average Earnings in the UK missed expectations to the downside, but still came with a healthy increase of 8.1% (fuelling inflation, of course).

The Reserve bank of Australia managed to confuse the markets with its Meeting Minutes, which were significantly more hawkish than the statement made at the rate-setting meeting two weeks ago. Is it really that hard to be consistent? Decide what you want to say, write that in your minutes and state only that in your, er, statement. Simple!

There’s a calmness in the markets but all eyes are on the Middle East. US President Biden is jetting out to Israel tomorrow essentially to show the world that he is watching. And not only him. The Pentagon has sent the USS Dwight D Eisenhower carrier strike group to the Eastern Med, where it will join the USS Gerald Ford carrier strike group in a show of force. Together, that’s almost 11,000 personnel and 200 aircraft. That would give you pause for thought.

I am watching the USD, EUR and GBP go the “wrong” way, but am happy in the knowledge that these moves just give better pricing when the setups eventually coalesce.

I’ll be back tomorrow, in the morning, after UK CPI.

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