The Millennials take over
- Politics is influencing markets again. Iraqi forces have moved into Kirkuk in an apparent attempt to establish control of the oil fields in the Kurdish area. Fighting has been reported, and crude oil prices have risen a little. Uncertainties created by the US-Iran situation may not help regional stability.
- Austria's center-right People's Party is expected to govern in coalition with the anti-establishment Freedom Party in the wake of the weekend's election result. The Freedom Party has been in office before, lessening the shock value for the market. The media is likely to focus on the fact that a Millennial is now running Austria.
- China's producer price inflation rose 6.9% on the year, but producer prices have a loose relationship to export prices, and China's export prices have very little relationship at all to foreign consumer prices. This has little global impact, therefore. Euro area trade data is due, and is politically sensitive.
- The US Empire State manufacturing opinion poll is really not worth getting out of bed for. UK PM May travels to Brussels for yet more negotiations in the EU-UK UK-EU divorce. An EU leaders' summit will be held Thursday. The fun never stops.