Daily update
Daily update
- US politicians are politicking. At the margin, Vice President Harris’s endorsement of the proposed increase in US corporate tax rates might seem to be market relevant. However, listed companies are not always that sensitive to headline corporate tax rates. Otherwise, this is still mainly political theater (obviously, were Taylor Swift to do an impromptu concert in Chicago, the theater would become serious).
- Oil prices fell a little on reports that Israel had agreed to the outline of a US proposed ceasefire. Hamas has not, as yet, agreed. The humanitarian consequences of any ceasefire are obviously important, the market consequences less so.
- Ahead of the Jackson Hole central bankers’ summer camp, there are two Federal Reserve speakers (Barr and Bostic). The Fed is late in cutting rates, though this will not be publicly acknowledged. It is unlikely that either will change market expectations for a September rate cut, although they might influence expectations about the pace of rate reductions.
- German July producer price data was unexciting. Final Eurozone July consumer price inflation is also unlikely to excite markets (as the final figure rarely changes). The June Eurozone current account data is not market moving but is important to monitor, as the effects of economic nationalism become more visible.
