What’s in Today’s Report:
- Three Reasons the June Lows Could Hold
- Understanding Japan’s Currency Intervention
Futures are sharply lower as global yields continued to climb while economic data was largely disappointing.
September flash PMIs showed contraction in the EU (48.2) and the UK (48.4) as signs of a global slowdown grow.
The UK government announced a fiscal stimulus package but the news is spiking UK bond yields and pressuring the Pound as markets view it as inflationary.
Today we get speeches from Powell (2:00 p.m. ET) and Brainard, but don’t expect their message to be any different then what was just said at Wednesday’s FOMC meeting. Beyond the Fed speak, the key economic report today is the September Flash Composite PMI (E: 47.0) and this data points needs to largely meet expectations, because a strong number will push yields higher, while a weak number will increase stagflation concerns.