A Busy Week Here And Abroad
Apart from the Dallas Manufacturing data released this morning (which at -6.3, came in very close to the forecasted -6.0), Monday is a relatively slow data day. Not so going forward, in what is truly one of the most important weeks of the year.
Tuesday marks the beginning of the latest round of U.S.-China trade discussions in Shanghai. On the domestic side, PCE, or personal consumption expenditures data, which measures price changes in consumer goods and services, will be released.
The long-awaited Federal Open Market Committee (FOMC) meeting is on Wednesday the 31st, when the many prognostications over a 25 or 50 basis point policy rate cut will be laid to rest. Keep in mind that non-farm employment figures and Tuesday data could conceivably affect the final cut line. Fed Funds Futures have exactly 30 basis points priced into the market, equating to a 60% likelihood of a 50 bp cut. President Trump weighed in on Twitter: “The Fed has made all of the wrong moves. A small rate cut is not enough, but we will win anyway!”
Manufacturing sector PMI numbers will be the key data on Thursday. Rounding out the week, non-farm payroll data comes out on Friday.
Pound Falls, Stocks Soar As Boris Johnson No-Deal Brexit Looks More Likely
British stocks were up sharply today after the pound fell on worries that new Prime Minister Boris Johnson will in fact pursue a no-deal Brexit. The FTSE-100 was up 1.8%, it’s biggest one-day jump in six months, and the index reached its highest point in almost a year.
Adding to the momentum was M&A news, with deals between London Stock Exchange and financial data analytics provider Refinitiv Holdings, and also a pending merger of food delivery services Just Eat and Takeaway.