European Economic News Preview: Eurozone Foreign Trade Data Due

Foreign trade data from the euro area is the top economic news due on Monday, headlining a light day for the European economic news.

At 2.00 am ET, Destatis is scheduled to issue Germany’s wholesale prices for September. Wholesale price inflation is forecast to rise to 0.3 percent from 0.2 percent in August.

In the meantime, foreign trade data is due from Norway.

At 3.30 am ET, European Central Bank’s board member Andrea Enria is set to speak at a seminar in Brussels.

At 4.00 am ET, Italy’s Istat publishes final consumer and harmonized prices for September. The statistical office is set to confirm consumer price inflation at 5.3 percent, down from 5.4 percent in August.

At 5.00 am ET, Eurostat is slated to release euro area foreign trade figures for August. The trade surplus totaled EUR 6.5 billion in July.

Gold Reaches Highest Levels In Well Over Two Months

The price of gold moved to the upside during trading on Friday, extending the upward trend seen over the past several sessions.

Gold for December delivery climbed $13.90 or 0.7 percent to $1,994.40 an ounce, ending the session at its highest closing level in well over two months.

The precious metal continued to benefit from its appeal as a safe haven amid fears the Israel-Hamas war may escalate into a broader regional crisis.

Israeli Defense Minister Yoav Gallant told troops gathered at the Gaza border on Thursday that they would soon see the Palestinian enclave “from inside.”

Additionally, reports emerged that U.S. troops are being targeted at several military bases across Iraq and Syria, while a U.S. Navy warship destroyed cruise missiles and drones fired toward Israel by Houthi rebels in Yemen.

Traders also kept an eye on activity in the bond market, with treasury yields giving back ground after once again reaching their highest levels in over sixteen years on Thursday.

The recent advance by yields reflects continued worries about the outlook for interest rates, with the Federal Reserve signaling rates will remain higher for longer than previously anticipated.

During a speech on Thursday, Fed Chair Jerome Powell described inflation as “still too high” and warned additional monetary policy tightening may be needed.

Powell also reiterated Fed officials are willing to keeping policy restrictive until they are confident inflation is on a downward path.

Treasuries Regain Ground Following Recent Weakness

After moving notably lower over the past several sessions, treasuries regained ground during the trading day on Friday.

Bond prices showed a strong move to the upside in early trading and remained firmly positive throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 6.4 basis points to 4.924 percent.

The pullback by the ten-year yield came on the heels of a four-day advance, with the yield once again reaching its highest levels in over sixteen years.

Overnight, the ten-year yield climbed above 5 percent for the first time since July 2007, potentially inspiring some traders to pick up treasuries at reduced levels.

Treasuries may also have benefitted from their appeal as a safe haven amid fears the Israel-Hamas war may escalate into a broader regional crisis.

Israeli Defense Minister Yoav Gallant told troops gathered at the Gaza border on Thursday that they would soon see the Palestinian enclave “from inside.”

Additionally, reports emerged that U.S. troops are being targeted at several military bases across Iraq and Syria, while a U.S. Navy warship destroyed cruise missiles and drones fired toward Israel by Houthi rebels in Yemen.

A report on personal income and spending in the month of September is likely to be in focus next week, as it includes readings on inflation said to be preferred by the Fed.

Traders are also likely to keep an eye on reports on new home sales, durable goods orders, pending home sales and initial jobless claims.

Crude Oil Turns Lower After Early Move To The Upside

After an early move to the upside, the price of crude oil gave back ground over the course of the trading session on Friday.

Crude futures for November delivery, which expire on Friday, rose as high as $90.78 a barrel before pulling back and closing down $0.62 or 0.7 percent at $88.75 a barrel.

The more active December futures slipped $0.29 or 0.3 percent to $88.08 a barrel after reaching a high of $89.85 a barrel.

The early advance by oil prices came amid fears the Israel-Hamas war may escalate into a broader regional crisis.

Israeli Defense Minister Yoav Gallant told troops gathered at the Gaza border on Thursday that they would soon see the Palestinian enclave “from inside.”

Additionally, reports emerged that U.S. troops are being targeted at several military bases across Iraq and Syria, while a U.S. Navy warship destroyed cruise missiles and drones fired toward Israel by Houthi rebels in Yemen.

Buying interest waned over the course of the session, however, as traders expressed concerns about the outlook for global demand.

Highway Holdings Ltd Q1 Earnings Summary

Below are the earnings highlights for Highway Holdings Ltd (HIHO):

Earnings: -$0.34 million in Q1 vs. $0.39 million in the same period last year.
EPS: -$0.08 in Q1 vs. $0.09 in the same period last year.
Revenue: $1.35 million in Q1 vs. $2.94 million in the same period last year.

Porsche Confirms FY Earnings Forecast

Porsche Automobil Holding (POAHY.PK,POAHF.PK) confirmed its earnings forecast. For the fiscal year 2023, the Porsche SE group profit after tax is expected to be in the lower half of the forecasted bandwidth.

Due to its equity investment in Volkswagen AG of around 31.9 percent, the group result after tax of Porsche SE is significantly influenced by the at equity result attributable to Porsche SE and, thus by the group result after tax at the level of Volkswagen.

Volkswagen updated its forecast for the fiscal year 2023. Accordingly, Volkswagen AG now expects full-year operating profit in 2023 to be in the region of the prior-year figure before special items. Operating profit in 2022 was around 22.5 billion euros before special items.

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