In a market wrap, analysts at ANZ Bank New Zealand Limited explained that UK PM May’s comment that the EU and UK are “a long way apart on two issues” saw the FTSE 100 rise 1.7% with a view that BoE would need to remain accommodative.
Key Quotes:
“Gilts fell 2-3bps across the curve. Other European bourses rallied on Friday but fizzled out by late afternoon in NY. US shares were mixed with the Dow up 0.3%, S&P flat and the NASDAQ off 0.5%. The USD was largely unchanged against most in the G10 except GBP (-1.4%), which was hit by Brexit pessimism. US treasury yields were little changed and oil was biased higher, with WTI for near-term delivery up 0.7% to USD70.78/bbl. Gold experienced a flash crash, before recovering somewhat to close down 0.6% at USD1200/oz.”
Data/event
“The US Flash manufacturing PMI came in a tad stronger than expected, with strong details (new orders, new export orders, output and backlog of orders up, and some evidence of inventory build in intermediate goods ahead of tariffs). It suggests manufacturing growth will remain elevated over the coming months. On the other hand the services PMI was unexpectedly weaker. Meanwhile European Flash PMIs were generally a little softer in September, while remaining well above 50, signalling expansion.”
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