The sell off in global equities continues, driven by AI, ahead of key Q3 results, set to be released from Nvidia. The overvaluation perception of AI is materialising in market meltdowns, although FX and Bond markets remain relatively calm. US ADP private sector jobs report, showed a contraction, adding fuel to the belief that the unreported jobs market is very weak. The Government closure has hidden official reports allowed speculation to fill the vacuum. The US Dollar was steady, with the EUR trading around 1.1600, while the GBP held 1.3150.Commodity currencies are being undermined by the uncertainty in equity markets and some ructions in Japan/China. Tensions are rising fast between China and Japan, with China placing a tourist warning on Japan, following Japanese interference over Taiwan. This disruption, were it to escalate between the Asian superpowers, could cause mayhem in markets. Japanese bond yields, are already under pressure, spiking upwards. The AUD surrendered temporarily 0.6500, while the NZD trades around 0.5650, both under threat.
