In today’s news, the focus is on the impact of an imminent government shutdown and its effects on the market and government data. Equities in Asian and European markets showed mixed results overnight, while US stocks opened higher but later pared back gains. The Federal Reserve’s primary inflation rate indicated further cooling of core price pressures in August, despite rising energy prices boosting headline inflation. Over the past decade, September has historically been a down period for the market, while October has performed better.
The article also highlights quotes from Chicago Fed President Austan Goolsbee, who cautioned against placing too much weight on the traditional economic idea that steep job losses are needed to quell inflation. The bond market’s thinking about the Federal Reserve’s upcoming policy decision on November 1 is “No data, no hike.” Additionally, the US State Department’s Global Engagement Center released a report that recognizes Beijing’s efforts in constructing an information ecosystem for propaganda and disinformation.
In terms of economic data, the US core Personal Consumption Expenditures (PCE) prices showed a modest monthly increase in August, with annual inflation decreasing compared to the previous year. Eurozone’s inflation rate also dropped, potentially easing pressure on interest rate hikes by the European Central Bank (ECB). However, mortgage rates in the US reached their highest level since December 2000, signaling struggles in the housing market. Home sales have plummeted to their slowest pace since January, impacted by rising mortgage rates and a lack of available housing inventory.
Notably, the California governor has eased an anti-smog rule as gasoline prices surge in the state. Furthermore, the low water levels in the Mississippi River are impacting the agricultural sector, with barges facing navigation difficulties and transit delays during the harvest season. USDA’s Quarterly Grain Stocks Report is set to reveal final 2022-23 ending stocks for corn, soybeans, and wheat, with expectations of surprises and revisions to previous year’s crop estimates.
Overall, the news article emphasizes the market’s response to global economic indicators, the potential impacts of a government shutdown, and specific challenges faced in the housing and agricultural sectors.