๐ Friday, October 20
โบ Global equities faced continued headwinds amid escalating conflicts in the Middle East. Investors' concerns grew with reports of intensified drone attacks in Iraq and Syria and Israel preparing for a potential ground invasion of Gaza.
โบ European markets faced headwinds as the Stoxx 600 Index trades 0.6% lower after opening again ~1% below yesterday's closing price. Economic indicators presented mixed sentiments: In the UK, September's retail sales slid by 0.9% MoM, a deeper drop than the forecasted 0.2% decline. This was influenced by warm weather and surging living costs which led to a 1.9% slump in non-food stores sales. On an annual scale, sales receded by 1.0%, a modest decline since the downturn starting April 2022 but notably worse than the anticipated 0.1% dip. Excluding fuel, retail sales registered -1.0%, a decline from August's 0.6%. Meanwhile, Germany reported a downturn in Producer Price Inflation for September at -0.2%, contrasting the previous month's 0.3% and falling short of the 0.4% consensus. Remarkably, a year-on-year comparison for the same month marked a stark 14.7% reduction in Producer Prices, surpassing the predicted 14.2% decrease. It's a strong sign that inflation will soon turn much lower with rising energy/fuel prices remaining the main driver for inflation.
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