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US equities continued to rise, despite lower trading volumes due to the Columbus Day holiday. The S&P 500 gained 0.7%, with most sectors showing positive performance. In Europe, the Euro Stoxx 50 increased by 0.7%, while the FTSE 100 rose 0.5%. The US Treasury market remained closed for the holiday.
Minneapolis Federal Reserve President Neel Kashkari said that “further modest reductions” will likely be necessary in the coming quarters to meet the Fed’s goals, while emphasizing that future decisions will be guided by data. He also pointed out that it’s uncertain how restrictive current policy is due to the unclear level of the neutral rate, a key challenge for central banks aiming to steer policy toward more neutral territory.
There are signs that the “Trump trade” is gaining momentum again, with the USD rising 0.4%, in line with that trend. In US equities, Goldman Sachs’ stock baskets, which track those benefiting from Republican or Democrat leadership, show recent outperformance for stocks tied to Republican gains. Public polls and betting markets have also shown a shift in momentum toward Trump.
Mid-market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6720 |
| AUD/NZD | 1.1040 |
| AUD/JPY | 100.59 |
| AUD/CNH | 4.7656 |
| AUD/EUR | 0.6162 |
| AUD/GBP | 0.5144 |
| AUD/HKD | 5.2165 |
Chart of the day
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