Less tense?

Daily update

Trade tensions between the US and China appear to have moved into a “dial down” phase after the recent escalation. While details will probably not be given until the proposed meeting between US President Trump and China’s President Xi later this week, the threatened 100% tariff on US consumers of China’s exports appears to have been removed.
Friday’s rare US data release, of September consumer price inflation, was slightly lower than expected for the headline. The details suggest that the actual inflation experience of most US households is somewhat less benign, and there are some very large price increases for some higher profile items. The numbers allow the Federal Reserve to cut rates without giving absolute confidence that inflation pressures are contained.
Argentina’s President Milei fared better than polls had predicted in the mid-term elections. Pundits now expect a bounce back in the peso (helping US taxpayers reverse recent trading losses, at least on paper). Over the medium term, the peso’s fate depends on whether recent moves were fundamental or political in nature.
The German ifo business sentiment poll, and the EU’s inflation expectations poll are due. China’s September industrial profits rose quite strongly, which is not consistent with accusations of China “dumping” exports and deliberately selling at a loss.