Dear Reader,

Today's overview of economic news and market action

• There was a subdued start to the week on financial markets yesterday …
• Both the Euro Stoxx 50 and the S&P 500 maintained their poor momentum from last week, falling by 0.5% and 0.3% …
• On the currency front, the main pairs remained relatively range bound …
• Overnight the dollar registered some marginal gains …
• This sees EUR/USD open today back below the $1.09 threshold ….
• GBP/USD is back near the midpoint of $1.29-1.30 …
• EUR/GBP remains in and around the 84p handle …
• Today, the US non-manufacturing ISM (Oct) is unlikely to move the needle …
• Focus will remain on the US elections as voting draws to a close, suggesting the subdued mood on markets will continue …

All rates quoted are indicative market rates.

October data provided tentative signs of a turnaround in manufacturing sector performance, with both production volumes and incoming new work returning to growth. Although modest, the upturn in new orders was the strongest for nearly twoand-a-half years and achieved.

UK Chancellor avoids a “Truss moment”

The market reaction to this week’s UK Autumn Budget, suggests investor appetite has been tested by the scale of spending planned by the Chancellor in the next few years. However, this was far from a “Truss moment” which led to a plunge in gilts and sterling in Autumn 2022

October data provided tentative signs of a turnaround in manufacturing sector performance, with both production volumes and incoming new work returning to growth. Although modest, the upturn in new orders was the strongest for nearly twoand-a-half years and achieved against a backdrop of still subdued export demand.