China’s Xi urges stronger ties and fair business environment with SpainGerman Finance Minister backs Draghi’s growth focus but not joint EU borrowingSentiment continues to improve through the sessionDraghi urges EU to boost spending by €750B and calls for joint debt issuanceChina seeks public input on carbon trading plan for cement steel and aluminium sectorsNHC warns of potential surge and hurricane winds to Louisiana and TexasChina to issue up to €2 bln in euro sovereign bonds in Paris on Sept 23What’s priced into money markets for upcoming September central bank decisionsEU Sentix Index -15.4 vs -12.5 expectedGreece plans €8-10 bln bond issue in 2025 aims for early bailout repaymentsChina August passenger car sales down 1.1% y/y to 1.92 mln CPCA reportsSwiss sight deposits dip slightly to 447.258 bln SFR in latest weekRussian forces target energy facilities in 7 regions Ukraine’s Energy Ministry reportsJapan backs ex-FX diplomat Masato Kanda for next ADB PresidentWeekly update on interest rate expectationsRussian military to participate in China’s sea and air drills in Japan and Okhotsk seasMarket Outlook for the Week of 9th – 13th SeptemberPrice action attempting a bit of a recovery from Friday’s movesWhat are the main events for today?Swedish Housing Prices 47% vs 43% priorJapan’s Takaichi says inflation is still weak when excluding external factorsToday’s FX option expiry levels for the NY cutNHC warns of life-threatening storm surge and hurricane winds for Louisiana and TexasJapan’s Takaichi says strategic fiscal spending to boost jobs income and tax revenueJapan economy watchers poll 49.0 vs 47.5 priorGerman intelligence warns of Russian GRU cyber group targeting NATO and EU nationsBofA forecasts Fed to start 25bps cuts from September 2024 and slowing in 2025Trafigura hints at possible $60 oilRussia’s coal exports to China drop 8% in H1 2024, rebound expected in 2025Goldman Sachs: OPEC to implement moderate production hikes in coming quartersWhat’s on the calendar for today?S&P Global expects OPEC+ to begin oil output increases in 2025
Markets:
CAD leads, JPY lags on the dayEuropean equities higher;
S&P 500 futures up 0.79%US 10-year yields up 2 bps to
3.754% Gold flat at $2,497WTI
crude up 0.93% to $68.29Bitcoin
up 0.79% to $55,306
It’s been a
quiet session with no notable news release. The mood in the markets has been
positive but we will need to see how that evolves after the US cash equity
open. The US Dollar extended the gains following the better than feared NFP report on Friday.
Unfortunately,
this week is pretty bare on the data front as we head into the FOMC decision
next week. The market still sees a 25% chance of a 50 bps cut at the upcoming
meeting and a soft US CPI report on Wednesday might increase those
probabilities a little.
The focus
remains on the growth and labour market data though. For the growth data, we
have the US NFIB Small Business Optimism Index tomorrow and the University of
Michigan Consumer Sentiment on Friday. For the labour market data, we get the
latest US Jobless Claims on Thursday.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
