What’s in Today’s Report:
- Bottom Line: What’s Needed for Markets to Stabilize (It’s Not That Much)
- Weekly Market Preview: Can Bond Yields Fall Further?
- Weekly Economic Cheat Sheet: Jobs Report on Friday
Futures are slightly higher following some backtracking on the UK fiscal spending plan.
UK PM Truss has abandoned part of her spending/tax cut plan amidst market and political pressure as she will no longer eliminate the 45% top tax rate (this is a mild positive as GILT yields were slightly lower on the news).
Oil prices rallied 3% as markets expect a material production cut from OPEC+ at this week’s meeting.
Today focus will be on the ISM Manufacturing PMI (E: 52.0) and while the headline reading is important as always, the Prices index will also be closely watched. If that index can decline below 50 it will be a strong signal that dis-inflation is starting to work its way into the economy (and that’s a good thing). There’s one Fed speakers today, Williams at 3:10 p.m. ET but he shouldn’t move markets.