Yesterday saw a buoyant session in the US, fueled by bets that the Fed will soon start cutting rates—the S&P 500 climbed for an eighth straight day. This momentum carried over into the Asian session, with stocks gaining in Japan, South Korea, and Australia, while stocks in China slipped. Investor allocations seem robust despite recent volatility and uncertainty, perhaps due to the swath of recent data easing fears surrounding re-accelerating inflation. Stock volumes have been trending lower since the early-August selloff, as traders still wait for Jackson Hole later this week to gauge how dovish the Fed speakers will really be.
In Australia, the central bank signaled it will hold interest rates at their high for an "extended period" to ensure that inflation returns to its target band next year. Chinese banks kept lending rates unchanged for August.
Oil extended its biggest drop in two weeks as the US said Israel accepted a cease-fire proposal. WTI is now at $73.71 per barrel. Spot gold is still on record-setting form, currently at $2,499.76/oz, after topping $2,500 overnight.
Today, we have Eurozone CPI to look out for and not much else!
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