Archives of “October 30, 2019” day

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Christine Lagarde: Global economic growth is fragile

  
Analysis, Economy

Incoming ECB president, Christine Lagarde, is speaking on French radio

Lagarde
  • Trade wars, Brexit and geopolitics contributing to fragility
  • Trade tensions are taking a toll on confidence
  • Some euro area states need to do more to promote economic gwroth
  • Some states should use their budget surpluses for investment
Not a different message to what we have heard from Draghi and ECB members over the past few weeks. And I wouldn’t expect her appointment to shake things up in that regard.

FOMC meet today – rate cut is widely expected but its ‘what’s next?’ of most focus

  
  Analysis
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Via the WSJ a good in summary look at what will be the focus in the
  • Without signs of a sharper deterioration in economic data, officials on Wednesday may seek to tamp down on expectations that they will keep cutting rates-including at their final scheduled meeting of the year in December
  • At the same time, soft economic data of late could make officials uncomfortable delivering an “all clear” signal, particularly because any residual damage from the U.S.-China trade war may not yet be fully reflected. 
The Journal characterize Powell press conference as him walking a tightrope given those two points they make.
Other metaphors include:
  •  “The challenge is threading a needle where the eye has become extremely tiny,” said Ellen Zentner, chief U.S. economist at Morgan Stanley
Link here for more, may be gated.
Earlier previews of the Federal Reserve Federal Open Market Committee policy meeting are here:

China’s UN envoy says US criticism of China re Xinjiang is not helpful for trade talks

  
Analysis, Politics

China’s envoy to the United Nations with the comment:

  •  Says US criticism of China’s policy in Xinjiang is not ‘helpful for having a good solution to the issue of trade talks’

Xinjiang is in northwest China, home to many ethnic minority groups. Yhe US has been vocal in its criticism of treatment of these groups, including the Uyghur people.

The comment highlights that there are issues beyond trade talks. Reminders of these tend to have a negative impact on ‘risk’, for example AUD/JPY.

ICYMI – China to loosen restrictions on foreign investment

  
  Analysis
  Tags

Late Tuesday/overnight news on China

  • China will eliminate all restrictions on foreign investments not included in its self-styled “negative lists”
  •  also will “neither explicitly nor implicitly” force foreign investors and companies to transfer technologies
A positive sign for relations between China and the US – tech transfer has been a contentious issue. Let’s see how far this goes in resolving.
via Reuters , link here for more

Major indices in the US close lower

  
Analysis, US Market

S&P makes a new intraday high but can’t keep gains

The major US indices in the US are closing lower on the day. The S&P index traded to a new intraday all-time high price at 3047.87, but backed off into the close. The NASDAQ composite index was the hardest said today falling by around -0.60% on the day
The final numbers are showing:
  • The S&P index closed down -2.6 points or -0.08% at 3036.84
  • The NASDAQ index fell -49.133 points or -0.59% at 8276.85
  • The Dow Jones industrial average fell -19.91 points or -0.07% at 27070.83

Apple and Facebook earnings will be released after the close today. Apple fell by -2.31% today after closing at an all-time record high yesterday. Facebook was a little changed today.

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