Marketmind: Edgy market calm after worst day of 2023 By Reuters

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Marketmind: Edgy market calm after worst day of 2023

Punch-drunk from a bombardment of central bank decisions this week, world markets attempted to stabilise on Friday as fear of an aggressive Federal Reserve was offset by a more dovish Bank of Japan and relatively soothing September business readouts.

A diary of key Fed speakers on Friday may now be critical in calming the horses as markets have run scared at the"higher for longer" message, the real prospect of another hike this year and fewer cuts in 2024. The mood was better on Friday - helped by an early rally in Chinese stocks that seemed to riff off hopes for a turn in dour economic picture there and the fact interest rates are going in the opposite direction. Data showing seven consecutive weeks of foreign outflows from country showed not all is well yet.volatility gauge held close to one-month highs above 17.

That view was reinforced on Friday by news UK retail sales rebounded by less than expected in August and another gloomy reading from this month's business surveys.

 

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