FPG Overnight Headlines 28/10/2022

Overnight headlines

The yield on the US 10-year note slid 8 basis points to 3.92 per cent. The UK 10-year yield fell 18 basis points to 3.39 per cent.

On Wall Street, shares were mixed in late trade as the Dow advanced on positive earnings results including from Caterpillar and McDonald’s, while the Nasdaq was dragged lower by Meta’s implosion. The NYSE Fang + Index sank 4.1 per cent.

The VIX was steady, holding just above 27.

The US Commerce Department said gross domestic product increased at a 2.6 per cent annualised rate last quarter, above expectations of a 2.4 per cent rise, in its advance GDP estimate.

The report showed an end to two straight quarterly decreases in output, which had raised concerns that the US economy was in recession. The core PCE price index, a key inflation metric, rose in line with expectations and showed a decline from the second quarter.

Market movements

• AUD -0.7% to 64.50 US cents
• Bitcoin -2% to $US20,306
• On Wall St: Dow +0.6% S&P -0.6% Nasdaq -1.6%
• Stoxx 50 -0.02% FTSE +0.3% CAC -0.5% DAX +0.1%
• Spot gold -0.3% to $US1659.61/oz
• Brent crude +1.1% to $US96.73 a barrel
• Iron ore -6% to $US82.50 a tonne
• 10-year yield: US 3.92% Australia 3.83% Germany 1.96%

Today’s agenda

Local: Third-quarter PPI; NZ October consumer confidence

Overseas: Eurozone October economic and consumer confidence; UK October nationwide house prices; US third-quarter employment cost index, September personal income, spending and PCE Core, September pending home sales, University of Michigan October final consumer sentiment