- ECB's Muller: An October cut isn't totally excluded
- The central bank bonanza wraps up with the SNB later this week
- Germany September Ifo business climate index 85.4 vs 86.0 expected
- BOJ governor Ueda says unwinding of speculative yen positions has likely run its course
- European equities open higher as the positive mood keeps up
- What are the main events for today?
- BOE's Bailey: Inflation has come down a long way
- BOJ governor Ueda: Global markets remain somewhat unstable
- RBA's Bullock: We are prepared to respond in either direction depending on the data
- Eurostoxx futures +0.6% in early European trading
- RBA's Bullock: Rates are to remain on hold for the time being
- BOJ governor Ueda says must conduct monetary policy in timely, appropriate fashion
- AUD/USD continues to set its sight on the December high as RBA reiterates hawkish stance
- RBA leaves cash rate unchanged at 4.35%, as expected
- Heads up: RBA monetary policy decision set for the bottom of the hour
- Chinese yuan gains alongside more positive mood in domestic markets
Markets:
- NZD leads, JPY lags on the day
- European equities higher; S&P 500 futures up 0.03%
- US 10-year yields up 4 bps to 3.791%
- Gold up 0.08% to $2,630
- WTI crude up 2.49% to $72.13
- Bitcoin up 0.28% to $63,517
It’s been a quiet session in terms of data releases with just the German IFO on the agenda. The data was a touch softer than expected but no big deal. We got ECB’s Muller opening the door for a cut in October with the market now pricing in a 95% probability of a 25 bps move.
In the markets, the surprising announcement of a big stimulus from Chinese officials is still reverberating with commodities like copper and crude oil up notably on the day. Treasury yields are also up as the market is now focusing on global growth.
The focus will now switch to the US consumer confidence and the labour market details in the report. Looking forward, a pick-up in the US data in the next weeks and months could see long term Treasury yields rising further.
