Today’s Report is attached as a PDF.
What’s in Today’s Report:
- Why Isn’t the Tariff Delay Causing a Bigger Rally?
- Bond Market Update: Not Confirming 3000 in the S&P 500
Futures are marginally higher ahead of the ECB decision and following a short tariff delay by President Trump.
Trump announced that the October 1 tariff increases (25% to 30% on 250 bln of imports) will be delayed till October 15th as a gesture of “goodwill.”
Economic data was again soft as German Industrial Production dropped –0.4% vs. (E) -0.1%, continuing the trend of disappointing EU manufacturing data.
Today the key event is the ECB Meeting. The decision is at 7:45 a.m. and the Press Conference will be held at 8:30 a.m. For the ECB to meet expectations we need to see 1) A rate cut, 2) More QE and 3) A “Tiered” deposit system. Outside of the ECB we also get two important economic reports, CPI (E: 0.1%) and Jobless Claims (E: 215K) and they could move markets if they are surprises (especially is CPI runs hot).