America had another ‘bad news is good news’ moment yesterday; softer-than-expected ADP and growth data further fueled expectations that the Federal Reserve (Fed) is – maybe – good for a pause.
The S&P500 gained for the 4th consecutive session yesterday, as US 2-year yield settles below the 5% level. The softening Fed expectations are weighing on the US dollar, but keep in mind that the seasonality is on the dollar’s side in Septembers!
In Europe, the latest inflation numbers showed that inflation in both Spain and Germany ticked higher in August for the second month warning that the aggregate CPI number may not confirm a fall to 5.1% in headline inflation due to rally in energy prices. Later, the US core PCE data will say the last word before tomorrow’s jobs data.
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