Market wrap: US equities were biased higher while traders await US election results – ANZ

In a market wrap, analysts at ANZ Bank New Zealand Limited explained that Markets are waiting for the US mid-term election results.

Key Quotes:

“US equities were biased higher (0.3-0.7%), while the DAX was down 0.1% and FTSE down 0.9%. US yields are 1-2bps higher. Italian yields are up 5-8bps with budget issues still unresolved and a vote of confidence due over the coming day. The USD is mixed, however moves were contained, with GBP and NZD leading gains. A further fall in the GDT index did not put a dent in the NZD overnight. Oil is down around 2.5%, entering a bear market, down to a 7 month low. Gold fell 0.4%.”

Down:

The GDT index fell another 2%. Whole milk powder fell 2.9%. Milkfat prices also fell, while skim milk powder rose 1.2%.

Fewer openings:

US job openings remain elevated, although there was a dip in September. Openings printed at 7,009, down from 7,293, with 0.9 unemployed people per job opening, compared with 1.9 at the end of 2007.

Unexpected:

German factory orders unexpectedly rose from an upwardly revised August print. Orders gained 0.3% m/m, compared with expectations for a 0.5% fall. Weakness in the auto industry is being slowly resolved, and there are signs that manufacturing growth will regain strength in Q4.

Unstuck:

The euro area October composite PMI was 53.1, up from a preliminary print of 52.7, but is still down from 55 in September. Country data confirms that the synchronised euro area recovery is becoming unstuck. German data was strong, with the services PMI at 54.7 (up from 53.6) and the composite index at 53.4 (up from 52.7). But the Italian PMI was dreadful at 49.3, compared with 52.4 in September.”