19/10/2018 – Argonaut Morning Note

Market Update & Important Indicators:

US equity markets fell sharply again on Thursday, with the Dow down 327 points; the 5th move over 1% in 8 sessions; A large number of US company earnings last night gave mixed readings – two economic bellwethers disappointed with United Rentals falling 15% and Snap on Tools down 10% US 10 year bonds were yielding 3.17%, as the US dollar hardened to 95.90 for the DXY;  US 10 year bonds were yielding 3.17%, as the US dollar hardened to 95.90 for the DXY; Interest rate expectations have risen post the FOMC minutes. St Louis President James Bullard however gave a move dovish stance as he proposed a new policy rule that concluded there is no need to raise interest rates further; The incident involving Saudi journalist Khashoggi continues to strain relations with Saudi allies, with a number of countries boycotting an upcoming investment conference in Riyadh.