• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Editor's Pick

Morning Bid: US ‘no landing’ scenario lifts markets

by October 7, 2024
written by October 7, 2024

A look at the day ahead in European and global markets from Kevin Buckland

What a difference a payrolls report makes.

From worries about a U.S. economic “hard landing”, the debate has shifted to the potential for a so-called “no landing”, where the labour market continues to burn hot even as inflation cools.

The story is so compelling that it completely absorbed the attention of traders and investors, even as Israeli bombs fell in Gaza and Lebanon, with Monday marking one year since the Hammas attack that triggered war.

Asian stocks picked up where Wall Street had left off, and Japan’s Nikkei led the charge with a 2% surge, getting extra help from a sharply weaker yen.

The U.S. exceptionalism narrative, which had been on shaky footing last month, is standing tall – and king dollar is straddling its shoulders.

The yen, euro and sterling all fell, although the return of Japanese finance ministry jawboning helped to put a floor under the yen. Traders’ scars from Japan’s last round of currency intervention may have started to twinge when top currency diplomat Atsushi Mimura said he was watching speculative moves “with a sense of urgency”.

Sterling, of course, has been caught in the crosscurrents of a shock dovish shift by Bank of England boss Andrew Bailey last week, which were then countered by BoE chief economist Huw Pill less than 24 hours later.

The euro, though, continues to suffer that sinking feeling, as more ECB officials join their president, Christine Lagarde, in signalling a brisk pace of further easing. ECB policymaker Francois Villeroy de Galhau was the latest, saying the central bank will “quite probably” cut this month amid the risk of an inflation undershoot.

There will be no shortage of additional central bank speakers on Monday.

ECB chief economist Philip Lane and board member Piero Cipollone both give speeches in Frankfurt, and peer Jose Luis Escriva speaks in Madrid.

There is also a Eurogroup meeting in Luxembourg, with Lagarde in attendance.

Out of the United States, we’ll hear Fedspeak from Governor Michelle Bowman and no fewer than three regional heads: Minneapolis’ Neel Kashkari, Atlanta’s Raphael Bostic and St. Louis’ Alberto Musalem.

Chicago Fed President Austan Goolsbee already had his say on the jobs data on Friday. In back-to-back interviews on Bloomberg and Yahoo! Finance, he called the figures “superb”, giving the Fed “both time and runway to figure out where the settling point is”. He added, though, that rates still need to come down “a lot” from here.

Additional developments that could influence markets on Monday:

-German industrial orders, manufacturing output, consumer goods (all Aug)

-UK Halifax house prices (Sep)

-Italy retail sales, trade balance (both Aug)

-Euro area sentix index (Oct), retail sales (Aug)

(By Kevin Buckland; Editing by Edmund Klamann)

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Asia stocks surge on US payrolls cheer, China stimulus hopes
next post
Dollar holds gains made on US jobs data and Middle East flare-up

You may also like

China central bank conducts 1.7 trln yuan of...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

ECB president fears loss of central bank independence

January 27, 2025

European tech shares tumble as China’s AI push...

January 27, 2025

Futures slip as investors eye China’s latest AI...

January 27, 2025

Markets may be repeating the mistake of 2019,...

January 27, 2025

How billionaire Caltagirone could influence Italy’s banking M&A...

January 27, 2025

How Italy’s MPS went from near collapse to...

January 27, 2025

Analysis-To weather Trump, emerging market investors look to...

January 27, 2025

Chinese AI startup DeepSeek overtakes ChatGPT on Apple...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 5, 2025
    • This California startup is cleaning water and removing CO₂ from the atmosphere — all at a reduced cost

      June 5, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (504)
    • Stock (6,426)

    Latest News

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

    Popular News

    • Exclusive-China’s Zeekr to take control of sister brand Lynk, sources say
    • Republicans in Congress warn rising US bond yields could hit Trump’s tax cut plans

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy