📆 Monday, September 23
► European stock futures are little changed, but economic data showed continued weakness. Germany’s flash PMI for September revealed deeper contraction in manufacturing at 40.3, while services dropped to 50.6, signaling near stagnation. In France, post-Olympics activity slowed, with the Composite PMI falling to 47.4. The services sector saw a sharp decline to 48.3 surprising markets but showing that last month's strong figure receive a strong Olympia boost, while manufacturing ticked up slightly to 44.0, showing mild improvement but remaining deep in contraction. Also Eurozone PMI came below expectations, with composite PMI remaining in contraction territory at 48.9 vs. 50.6 expected. Because of this, the EUR retreated and Eurozone bonds fell. Investors are also looking ahead to key inflation reports from Germany, France, and Spain this week, as well as Germany's Ifo Business Climate and employment data.
► US stock futures remain unchanged on Monday following last week’s highs in the Dow and S&P 500. Manufacturing and services PMI data, along with personal income and spending reports, are expected to influence the market later this week. Friday’s mixed close in the major indices was driven by caution due to the Triple Witching event and came after the previous session’s rally, fueled by the Fed’s rate cut. Traders are focused on balancing inflation concerns with signs of economic slowdown.
► Asian equities were mixed, with China leading gains on expectations of additional stimulus from the People's Bank of China. The PBoC’s surprise 14-day reverse repo rate cut injected liquidity into the system ahead of the week-long National Day holiday, lifting Chinese stocks. Japan’s markets remained closed for a holiday, though the JPY weakened further after dovish comments from the Bank of Japan’s governor.
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