Month End activity should dominate trading today, the Nasdaq +6.71% MTD and the S&P 3.89%, however European Stocks have not performed as well, the CAC -5.78% the best example. It is politics again that is hitting the headlines, the first Presidential Debate was a disaster for the Democrats. Some of Joe Biden's answers were nonsensical, after losing his train of thought to one question he ended the sentence by saying, “We finally beat Medicare” – an odd reference to the government run healthcare programme for the elderly. At one point Donald Trump quipped " I don't know what he said and I don't think he does either!". Even Vice-President Kamala Harris acknowledged that the president had a “slow start” but said that he finished strong.
Back to the markets and we have seen the UK GDP +0.7 QoQ and 0.3% MoM, GBPUSD fails to rally and in the currency world USDJPY is still the focus trading at 160.90. Bitcoin was little changed at $61,431.72 and Ether at $3,442.46, West Texas Intermediate crude rose 0.7% to $82.29 a barrel, Spot gold fell 0.1% to $2,325.11 an ounce. On the speaking front yesterday the Fed Bank of Atlanta President Raphael Bostic said he continues to expect one rate reduction this year amid signs inflation has resumed its decline. His projection echoes that of the Federal Open Market Committee. Swaps markets are pricing in about 45 basis points of easing in 2024, which would equate to less than two cuts.
As for the day ahead we have US PCE inflation, spending and income, the University of Michigan consumer sentiment survey and the Fed’s Thomas Barkin speaks.
