Dear Reader,

Today's overview of economic news and market action:

• Equity markets moved higher, despite choppy trading conditions …
• Data-wise, EZ Q3 GDP contracted by 0.1%, and headline inflation eased to 2.9% in Oct …
• Meantime, the euro was under pressure, while the yen remained on the defensive …
• Sees EUR/USD open this morning between $1.05-1.06 … 
• USD/JPY remains above ¥157, having traded to a fresh YTD high yesterday … 
• EUR/GBP is back at 87p … 
• GBP/USD remains at the midpoint of $1.21-1.22 …
• Today, the calendar is very US centric …
• Most notably, the Fed is expected to leave interest rates unchanged …

Sharpest fall in production since July as sluggish demand conditions persist

Business conditions across the Irish manufacturing sector weakened to the greatest extent for three months in October as subdued export demand, customer destocking and lacklustre global economic conditions weighed on sales.

Markets expect rate cuts in 2024 as recession risks rise

The October meeting of the ECB’s Governing Council saw the Central Bank maintain its key deposit rate at 4%, which was very much in line with expectations.

PMI declined to 49.6 in Sep, indicating business conditions deteriorated slightly. New orders fell, including export orders. Output contracted for a seventh month running.

 Strong Public Finances

Today’s budget contained a fresh package of cost of living support measures totalling €2.7bn that will be rolled out over the winter months. These are mainly taking the form of direct household payments and energy credits. The Government is also providing an additional €6.4bn in other spending increases and tax cuts for next year.