Daily update
Daily update
- Equity markets strengthened yesterday. Higher energy prices on expectations of OPEC oil supply cuts helped energy stocks. Fiscal policy U-turns by the UK government may have strengthened investor perceptions of the power of markets to discipline governments, although the bulk of the UK’s deficit-financed higher income tax reductions remain in place. Fundamentals remain volatile, especially where politics is involved.
- US August factory orders data will be looked to, as the demand-supply balance for goods seems to be tilting towards supply exceeding demand. Selected categories have been experiencing price disinflation or occasionally deflation.
- The US job openings (JOLTS) data has attracted a lot of attention in recent months as a signal of the tightness of the US labor market. However, pre-pandemic, barely half of all job vacancies were reported as “openings.” The high numbers of openings being reported may be genuine new openings, or just a higher proportion of normal numbers of openings being captured by the data.
- Japanese Tokyo September consumer price inflation fell slightly on the headline, with the (international) core measure rising to 0.8%. Euro area August producer price inflation remains at the mercy of energy prices—although the detail will show companies are able to expand profit margins by raising prices faster than wage costs are rising.
