Daily update
Daily update
- Markets have detected some shifting around in the US approach to trade with China. US Treasury Secretary Bessent was vocal in asserting that US President Trump and China’s President Xi will meet. Markets have extrapolated from past meetings to conclude that this will reduce the temperature of the trade rhetoric.
- The current French government is expected to unveil another budget attempt. Whether this is anything other than aspirational remains to be seen—certainly there are a lot of challenges in getting it passed by the national assembly. However polarized the politics, the business of government will continue in France.
- The British Retail Consortium same-store sales data slowed in September. UK labor market data for September is due. It comes with quality concerns. Generally, the UK labor market has provided job security and reasonable real wage growth, but the UK household has a tendency to save money.
- The Argentinian drama saw the peso rally to levels not seen in two whole weeks, after the economy minister said that the US is willing to continue buying both Argentinian bonds and pesos. How sustainable this rally is depends on whether investors view recent moves as speculative or fundamental, and whether US politics allows such strong support.