NY Open – Adrenaline rush
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Markets were busy overnight with many developments. Bloomberg reported that China could inject ~CNY 1bn into its state banks, the first since 2008, another supportive measure for the economy. Chinese stocks saw the largest 1d gains in the year, HSI, CSI closing 4%. This created a spillover effect onto global equities and FX, with AUD and Asia FX among the top performers. Gold makes fresh ATH (again). Oil prices plunged as low as 3% after headlines that Saudi Arabia was ready to drop its price targets, increasing supply in the market. Elsewhere, Swiss CB delivered a dovish 25bps cut and signaled more cuts ahead – new house view: 3x25bps cuts into 2026. The US Treasury Market Conference kicks off today – Powell starts with a pre-recorded address at 09:20 EDT, though Collins, Kugler, Williams, Barr and Kashkari also feature. Watch claims data at 08:30 EDT – our economists expect a modest increase. Cap goods data and BEA annual revisions to GDP should also be monitored, out same time. ECB President Lagarde speaks at a risk conference at 09:30 EDT. Mixed views into Banxico decision at 15:00, though a fragile MXN could mean the bank opts for a cautious 25bps cut. |
