Economy Update
Bourses still firm on US Treasury Sec. Bessent saying data should give opportunity for a 50bps cut with a further 150 next year. New highs seen in Nasdaq, S&P, MSCI all index, and Nikkei again. Bitcoin on a tear with risk-on. Nikkei lately dipped as JPY takes a run on Bessent speculation that BoJ is behind the curve on raising rates. Goldman call 3 x 25bps cuts by the FED in 2025. FedWatch now pricing 25bps cut in September at 99.9%. EU GDP flash comes in at expectation but the UK beats on MoM, QoQ and YoY. S&P upgrades India’s rating on economic resilience. US PPI today gains in importance as inflation remains in the narrative. DAX +0.37%, CAC +0.30%, FTSE +0.19%, Euro STOXX600 +0.21%. USD fights back a little after crumbling on Bessent commentary and FedWatch Sep cut pricing with strength in JPY also pressing, DXY 97.85. Gold $3359. BTC $121,682.
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