Market movers today
Today is another quiet day in terms of data releases ahead of the more interesting releases tomorrow and Friday when we get inflation prints in both the US and the euro area.
The second estimate of Q2 US GDP growth is due out at 14:30 CET, which is likely to confirm that growth was strong in the quarter. While we think growth is going to slow, we still expect the US expansion to continue.
This morning, we get consumer confidence in Germany and consumer confidence in Denmark.
Selected market news
The UK and EU are said to be extending the deadline for a Brexit deal and avoiding a ‘hard’ Brexit. The deadline is expected to be pushed out to mid-November, as it would be difficult to reach an agreement by the end of October. The lack of progress in the Brexit negotiations has weighed on the Pound. Together with the uncertainty over the Italian budget for 2019, we have plenty of political uncertainty in Europe in autumn.
The Asian equity markets had a mixed session this morning. Sentiment is still fragile because of the uncertainty over trade between the US and China even though the market has turned more optimistic following the deal between the US and Mexico.
10Y Treasuries are still struggling to move above 3% following some bearish sentiment. A similar picture is seen in the European markets, where plenty of new issuance from SSA, financials and corporates is putting pressure on core-EU yields, where the 10Y German yield is approaching 40bp.
