Look Ahead 10/10/23: Middle East tensions eyed; BRC retail sales; Australia confidence; PepsiCo
Investors continue to digest the impact on renewed tensions in the Middle East. Britain and Australia release consumer and retail data. Plus, PepsiCo updates investors on consumption ahead of the US holiday season.
(Video Transcript)
Markets volatile amid Middle East uncertainty
Hello, I'm Angeline Ong and welcome to IGTV. This is your special Look Ahead to 10 October 2023. There'll be plenty of market-moving action given we're keeping a close eye on what's happening in Israel.
The safe-haven dollar, rising against the euro and sterling as military clashes between Israel and the Palestinian Islamic group, Hamas, deepened political uncertainty across the Middle East.
Taking a look at this chart, because we've got the BRC Retail Sales Monitor as well. That is a key one to look out for given that we are starting already the countdown to the holiday shopping season.
Can we expect a recession?
This is very much a US dollar story as well because, since the geopolitical uncertainty out of the Middle East, there have been many concerns of recession fears, concerns that perhaps the US dollar's inverse relationship with risk appetite will become more pronounced again. This is according to the global head of ethics research at HSBC, Paul Mackel.
Australian business and consumer confidence data due
Also turning our attention to Australia because we've got consumer confidence details there as well and the business confidence data.
Let's take a look at the Aussie dollar versus the US dollar because this is the hourly chart.
There has been quite a bit of volatility there given that both central banks from Australian and New Zealand hit the pause button for now on interest rate hikes. However, they have not completely closed the door to that and said they are closely monitoring the situation.
We haven't yet quite started on the earnings season. However, it is almost upon us. We've got a trading statement from REACH. This is out of the UK.
PepsiCo weathers turbulence through diversification
The big one to look out for will be PepsiCo. PepsiCo out with third-quarter earnings: it has been quite robust recently in terms of its numbers, despite the fears that consumption was just going to fall away.
However, given that it also has diversified - it's got a wider ‘fun food’ segment - it has managed to weather the storm. Look at its chart there ahead of its results. What will be interesting, of course, is what PepsiCo says about consumer behaviours as we come up to Thanksgiving, Black Friday and, of course, the Christmas shopping season.
And that's the latest from us. We'll be keeping a close eye on the market reaction to Israel-Hamas, as I mentioned earlier. And don't forget, Beat the Street is at 1.30pm at London time. We'll be counting down to the market reaction across Wall Street ahead of the Open for you as well.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
