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Much excitement

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The most exciting event of the day is doubtless the release of the US Federal Reserve's minutes of their last policy meeting. Markets are looking for guidance as to when the multi-year quantitative policy tightening program is likely to commence. 
  • There is political noise in Asia. The United Nations security council will discuss North Korea following yesterday's (theoretically inter-continental) missile test. The test provoked a storm of comment on the Trump Twitter feed. The questions are: 1. Does US President Trump's international standing allow the US to coordinate an international response? and 2. Do markets care?
  • The Saudi Arabian government meets with allies to discuss their response to the Qatari response to their ultimatum. The German foreign minister has suggested that the Saudis will reject the Qatari response. Investors probably care about this situation more than the North Korean one, as the direct economic consequences are more obvious. 
  • Markets will be treated to another round of opinion poll data in the form of the service sector confidence surveys. These numbers are still too high and need to correct down to reality. Meanwhile, prices in UK stores fell again on the BRC measure.