CORPORATE AND INSTITUTIONAL

There have been quite a lot of moving parts to the price action overnight.

Strong economic growth in Q2 is set to falter in Q3.

COVID restrictions hit retail in August, building on existing imbalances in China’s economy.

The lift in equities appears to be a case of ‘buy the dip’ with an absence of any positive news flow apart from the very second-tier Empire Fed Manufacturing Survey which surprised sharply to the upside.

A near term hit to GDP before the recovery continues.

Our data mapping points to another retail sales fall in August.

The market was looking for an ease in US CPI readings and in the end the figures delivered a bit more than expected

Confidence and conditions tick up.

At the Fed’s annual Jackson Hole conference, markets understandably reacted to US Fed Chair Powell’s speech which effectively significantly divorced tapering from rate hikes.

It has been a slow start to the week with little in the way of market moves outside of commodities. Markets overall appear to be in a holding pattern ahead of US CPI figures tonight and the FOMC next week . The S&P500 swung between small gains and losses to finish up 0.2% after five consecutive days of losses, helped along by energy stocks.

After a positive APAC lead, equities came under pressure again on Friday night following news the Biden administration was considering a new investigation into Chinese subsidies and their damage to the US economy

As expected, the ECB will moderate its Pandemic Emergency Purchase Program (PEPP) bond buying pace in Q4 with its December meeting now a key event. China makes historic sale of oil reserves weighing on oil prices.