Daily update
Daily update
- The US vice-presidential debate is more political entertainment than market relevant. Investors are interested in policy details, and election probabilities. Policy details are unlikely (neither campaign wants to give their opponents ammunition). Vice-presidential debates rarely affect the main political race. The question is whether this debate generates the same level of TikTok content as the presidential debate.
- Elsewhere, investors do have to pay attention to the utterances of Federal Reserve Chair Powell. Powell indicated yesterday that there would be two quarter-point rate cuts over the remainder of the year. The Fed had to scramble to catch up with inflation with its half-point rate cut, in a somewhat undignified manner. It still has to scramble (despite protestations it was late to cut rates), but can now scramble with a little more dignity.
- The Japanese Tankan third-quarter business sentiment poll generally showed marginal improvements (except for some aspects of the service sector). This survey is only a sentiment poll, but as it is run by the Bank of Japan, it perhaps has a little more credibility than private-sector polls.
- Dutch consumer prices exhibited disinflation, but a little less disinflation than expected. Nonetheless, European inflation rates are generally trending slower. A pontification of European Central Bank speakers grace the calendar today.
