Friday's Markets Update (October 20, 2023)

20 Oct 2023 by rate3

On Friday, the budget deficit narrowed, but Nasdaq and other stocks fell again due to unrest in the Middle East, rising bond yields, mixed earnings, and concerns about higher interest rates. Meanwhile, BTC extended its sudden rally, closing over 30K for the first time in two months. On the other hand, ETH stagnated as limited investor funds continued to flow into Bitcoin. Other news: FinCEN urged financial institutions to look for "suspicious activity."

Details

The US budget deficit narrowed in September (to USD 171B from 430B in Sept 2033), but it was still the largest since 2021. The deficit is expected to continue to grow in the coming years (for the 2023, the government posted a $1.695 trillion budget deficit, a 23% jump from the prior year) due to falling revenues and rising outlays (Medicare and interest costs).

Crypto

The US government's Financial Crimes Enforcement Network (FinCEN) has warned financial institutions to be on the lookout for "suspicious activity" that could be linked to funding terrorist groups.

On Week 43, key economic data releases in include US Q3 GDP growth, the PCE price index, personal income and spending, durable goods orders, PMI readings, housing market data, major US company earnings reports, central bank interest rate decisions, and flash services and manufacturing PMIs in several countries. Other key data releases internationally include Australia's inflation rate, Germany's Business Climate, and GFK consumer confidence, as well as GDP growth rates in South Korea and Spain, and the UK's unemployment rate.