Market roundup: Focus on Banks and Bond Market rout - Tip TV

“Bond market rout is primarily due to better-than-expected UK GDP release", says Marc Ostwald, Strategist at ADMISI while talking about the ongoing bond sell-off in UK and across the advanced world. Ostwald talks to Tip TV’s Zak Mir.

Key points

Steepening of the yield curve is good for banks

Latest quarterly earnings show banks had better trading income, thanks to Brexit driven volatility

US GDP - inventories are expected to be neutral after having acted a drag on the figure for last four quarters or so

Gold demand dropped quite sharply in Q3 and there is over supply now

Medium term interest rates are rising in the UK and that should support Pound, although another brief dip to 1.20 levels cannot be ruled out before a more pronounced recovery

EUR/USD - Ostwald says he would not want to be overexposed to the pair as it could go either way depending on the US election outcome

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