29/10/2026
30 Oct 2026.......Market Updates
Wall Street fell, despite lower bond yields and upbeat economic growth data and a neutral US PCE Price Index last night.
Market is questioning Warsh's credibility as he announced a Fed rate hold on Wednesday.
Warsh admitted that US economic growth is strong, inflation is too high and employment data is still healthy.
Hence, the market is begging the question, "Why was interest rates not raised?"
Is he returning Trump a favour before the US Midterms?
NASDAQ fell 1.5% as Alphabet lost 12%, after missing earnings and posting negative cash flow of $9.07 billion.
Intel and Amazon shares also slid lower on weaker than consensus AI earnings and outlook.
However, the S&P firm up a tad and closed @ 7,720 range 7,691-7,731) as US10Y and the DXY fell.
The DXY and the US10Y closed below 102.00 and 5% respectively.
The DXY closed @ 101.92 (range 101.86-102.44). The US10Y closed @ 4.93% (range 4.92%-5.02%).
The XAU/USD fell and hit 4005.00 low, despite a lower DXY and US10Y.
This was predicated mainly on higher oil prices and a potential December US rate hike plus rotation out of AI stocks to defensive stocks.
Brent and WTI Futures closed higher @ 111.56 (previous 110.2) and @ 102.86 (previous 102.08).
The USD/JPY traded inside a 157.50-158.00 range, waiting for the BOJ Interest Rates Decision (likely to hold rates) during the Far East session today.
Lagarde announced that she will step down as ECB Governor yesterday and will continue as caretaker, till Feb 2027 to nominate the next ECB Governor.
She cited her decision to quit due to her inability to remain neutral to world's affairs, and hence better to step down earlier for a smooth transition.
We have come to the last trading day of October and there are lots off "mega-events" looming in the month of November.
The events are :
1. US Midterms Elections (next Tuesday)
2. US/Israel's joint attack plans on Iran after the US Midterms?
3. The Mecca Pact (Iran/Saudi/Turkey) outcome
4. Ukraine/Russia/US trilateral ceasefire talk after 10 Nov 2026
5. Trump to meet Xi at the APAC Summit (17-18 Nov) in Shenzhen.
These events will garner a lot of pre-event volatilities, due to the year-end Hedge Funds "window-dressing" to end 2026!
Whatever investment assets that are over valued will be rotated to undervalue investment assets to lock in profits and to stay invested for 2027.
Hence, November and December could be the months that will offer more directional clarity over the 2026 global conflicts into 2027.
The main catalyst for whatever had happen since 2025 and 2026 is none other than Donald Trump!
Technically, the DXY and the US10Y is expected to continue lower while the XAU/USD is expected to search for a base between 3970.00-4000.00.
Hence current levels are low risk for a BUY towards 4600.00 (revised end 2026 target?)
Japan's CPI just reported a 2.8% (2.7% previous).
Let's see if the BOJ will hike rates later @ 11.30 Singapore time