|
Getting your Trinity Audio player ready...
|
After months of repeating the same message, that inflation is transitional, the FED Chairman Powell expressed worry about the persistence of high inflation. Chairman Powell even went further call it frustrating that the inflation pressure hasn’t eased by now.
The Federal Reserve committee is changing its message and openly expressing concerns about the persistence of inflation. The FOMC signaled not only the taper of their bond purchasing program but also changed the time plot and the numbers of the potential future interest rate hikes.
As a result of the changing message from the FED, the bond market broke out, pushing the 10-year yield higher, the stock market continued the decline, and the USD moved to the upside.
The markets are reacting to the changing environment. The liquidities which the Central Banks around the world have been providing will not stop suddenly. Rather, it will be a gradual reduction of liquidity. However, we now have persistent inflations in the EU, USA, Canada, and the UK.
There is a slowdown in the Chinese economy and cracks in the Chinese property market, and pressure which the Chinese government exercise on their biggest companies. There are talks about higher taxes in the UK and the US, not to mention the political games in the US and the drama about the debt ceiling. That is a lot to navigate, especially considering the higher valuation in the US stock markets and the bubble in the bond markets.
Next week, the markets will receive the latest monitory statement from the Reserve Bank of Australia. Will the RBA provides more details about the tapering of their bond purchasing program?
The markets might be in for a surprise from the Reserve Bank of New Zealand, which is expected to raise the interest rates next week. Will the bank postpone the interest rate hike again or not?
Monday, October 04, 2021
- Australia – Bank Holiday
- China – Bank Holiday
- Switzerland – CPI m/m
- Switzerland – Retail Sales y/y
- Spain – Unemployment Change
- EU – Sentix Investor Confidence
- OPEC Meetings
- Canada – Building Permits m/m
- US – Factory Orders m/m
Tuesday, October 05, 2021
- China – Bank Holiday
- New Zealand – NZIER Business Confidence
- New Zealand – ANZ Commodity Prices m/m
- Australia – AIG Construction Index
- Australia – ANZ Job Advertisements m/m
- Australia – Retail Sales m/m
- Australia – Trade Balance
- Australia – RBA Rate Statement
- Japan – Tokyo Core CPI y/y
- Japan – BOJ Gov Kuroda Speaks
- EU – French Industrial Production m/m
- EU – Spanish Services PMI
- EU – Italian Services PMI
- EU – French Final Services PMI
- EU – German Final Services PMI
- EU – Euro Zone Final Services PMI
- EU – PPI m/m
- EU – ECB President Lagarde Speaks
- UK – Final Services PMI
- UK – Housing Equity Withdrawal q/q
- Canada – Trade Balance
- US – Trade Balance
- US – Final Services PMI
- US – ISM Services PMI
- FOMC Member Quarles Speaks
Wednesday, October 06, 2021
- China – Bank Holiday
- New Zealand – RBNZ Rate Statement
- EU- German Factory Orders m/m
- EU – Retail Sales m/m
- UK – Construction PMI
- US – ADP Non-Farm Employment Change
- US – FOMC Member Bostic Speaks
- US – Crude Oil Inventories
Thursday, October 07, 2021
- China – Bank Holiday
- Australia – AIG Services Index
- Japan – Leading Indicators
- Switzerland – Unemployment Rate
- Switzerland – Foreign Currency Reserves
- EU – German Industrial Production m/m
- EU – French Trade Balance
- EU – Italian Retail Sales m/m
- EU – ECB Monetary Policy Meeting Accounts
- US – Challenger Job Cuts y/y
- US – Unemployment Claims
- US – FOMC Member Williams Speaks
- US – Consumer Credit m/m
- Canada – Ivey PMI
- Canada – BOC Gov Macklem Speaks
Friday, October 08, 2021
- Japan – Average Cash Earnings y/y
- Japan – Household Spending y/y
- Japan – Current Account
- Japan – Economy Watchers Sentiment
- Australia – RBA Financial Stability Review
- China – Caixin Services PMI
- China – New Loans
- EU – German Trade Balance
- UK – FPC Meeting Minutes
- UK – FPC Statement
- UK – BOE Quarterly Bulletin
- Canada – Employment Change
- Canada – Unemployment Rate
- US – Average Hourly Earnings m/m
- US – Non-Farm Employment Change
- US – Unemployment Rate
