Monthly Comment October 2023

The negative sentiment from September continued into October. Geopolitical uncertainty increased further due to the events in Israel and Palestine, and the risk of more states getting involved created additional concern. The price of both gold and oil initially rose, but the movements were subsequently moderate. In Europe, the ECB kept the interest rates unchanged, which was also expected. The European economy weakened while inflation fell, but no plans for interest rate cuts were communicated. In the US, the 10-year Treasury bond yield rose to 5%, which hasn’t happened since 2007. Many companies released their quarterly figures during the month. The outcome has been mixed, and it has taken a lot to please the market.