⚖️💱🔻Risk Falls Sharply, Safe Havens Bid In October: Cable FX Macro

• October monthly recap. Risk assets declined across our G10 watch list, the S&P 500 index fell 2.2% but finished off the lows as the equity benchmark had seen losses of 4.3%. Antipodes' and Swiss benchmarks underperformed

• Equity volatility turned higher as it reached 23.08 but closed below 20.0 to end the month with marginal gains. We have not seen the VIX monthly close above 20.0 since February

• In G10FX, safe havens were bid. The dollar and the Swiss franc outperformed the group, the latter retains its YTD top performer ranking. High-beta FX and the yen bottomed the group, weakness was more evident in the oil sensitive currencies

• Sovereign debt curves came in mixed as NZGBs outperformed while the front-end in the AGB was heavily offered, Australian 2yr yields rose by almost 40bps. The U.S. Treasury space underperformed, the 10yr yield rose to post a sixth consecutive month of increases, the longest winning streak since January 2017

• WTI crude oil had its worst trading month since May, front-end futures lost 10.8% despite escalating Middle East tensions