Daily update
Daily update
- There are a few Federal Reserve speakers scheduled, freed from the self-imposed silence that precedes a policy decision. Fed President Bostic, talking specifically on the economic outlook, is likely to attract attention. Markets want to hear that the Fed is scrambling to catch up with falling inflation, not that there is anything wrong with the economy. Fed President Kashkari is speaking on childcare—not immediately market moving, but important. Flexible working has allowed women (who are disproportionately responsible for childcare) to move to better paid jobs.
- South Korean export data for early September was distorted by the timing of holidays. The trend is for continued strength, especially in semiconductor sales. No corporate chief executive wants to be seen to be behind in AI.
- The People’s Bank of China (PBoC) cut one of its rates by 10bps, and announced a press conference by the PBoC governor tomorrow. Markets are anticipating more stimulus. It is uncertain how effective monetary policy will be in tackling consumer lethargy, which seems more about uncertainty over the future than a credit constraint.
- The calendar is otherwise quiet today. Assorted business sentiment polls are cluttering things up, and are subject to the normal problems such polls have been plagued with in recent years.
