Understanding Why the Fed Cut 50 bps
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What’s in Today’s Report:
- Understanding Why the Fed Cut 50 bps
- Weekly Market Preview: Can Momentum Keep Pushing Markets Higher?
- Weekly Economic Cheat Sheet: Focus Turns Back to Growth
Futures are slightly higher following a mostly quiet weekend of news and despite soft economic data overnight.
Economically, the EU flash PMIs were weaker than expected as manufacturing declined to 44.8 vs. (E) 45.7 while services nearly broke 50 (falling to 50.5 vs. (E) 52.3).
Geopolitically, Israeli strikes against Hezbollah continued but for now, markets are ignoring the escalation.
Today brings the two most important economic reports of the week vis the Flash Manufacturing PMI (E: 48.5) and Flash Services PMI (E: 55.3). Numbers that meet or modestly exceed estimates should keep last week’s rally going while very disappointing readings will modestly increase growth concerns.
There are also several Fed speakers today including Bostic (8:00 a.m. ET), Goolsbee (10:15 a.m. ET) and Kashkari (1:00 p.m. ET).
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