Israeli troops made an incursion into Lebanon as the battle with Hezbollah intensified while Iran and Israel engaged in missile strikes against each other. The Bank of Canada cut interest rates by 50bp to 3.75% while the RBA held rates steady. Australia’s CPI inflation for the year to the end of September came in at just 2.8% while the September employment growth report was surprisingly strong, indicating that a RBA rate cut may still be some months away.
The ASX300 Accumulation Index declined -1.3% and A-REITs fell -2.6%. Global share markets declined -0.9% though currency-unhedged investors gained 3.9%, bolstered by the AUD which slumped against the US dollar and Euro.
The Australian 2-year government bond yield rose by 0.40% to 4.05% and the Australian 10-year government bond yield jumped by 0.53% to 4.50%. The US 2-year government bond yield rose by 0.53% to 4.17% and the US 10-year government bond yield jumped by 0.50% to close at 4.28%.
AUTHOR: Allan Grant
Disclaimer: The above is intended as general market commentary only and is not intended as, and does not constitute, advice of any kind. No liability is accepted for any action taken based on the above or for any loss suffered as a result of reliance on the same.
