📆 Friday, September 8
â–º US equity futures & European stocks saw a slight but likely short-lived uplift after a comment from Federal Reserve Bank of New York President John Williams who hinted that Fed is satisfied with the current position for US monetary policy. Concerns about more hawkishness or higher rates for longer continue to affect market sentiment.
â–º In Europe, the Stoxx 600 Index started with gains but moved lower again – currently trading at -0.25%. Germany reported an inflation rate of 6.1% in August – which was in line with consensus but shows that inflation remained stubborn. The energy sector grabbed attention when Chevron's workers in Australia began strikes, pushing European gas prices up by 11%. This movement stirs concerns over potential disruptions to supply and will increase inflation concerns short-term.
â–º China's offshore-traded CNY is nearing its weakest level ever, raising suspicions of officials being comfortable with the currency's slow depreciation. The MSCI Asia Pacific Index declined 0.5%, with significant downturns in Japan and China. Weakness in China, including Japan – which is leading the losses today – will weigh on markets in Europe and, to a lesser extent, Wall Street.
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