The Fed's preferred inflation gauge, PCE, cooled to 2.2%, down from 2.5% in July. Excluding food and energy, core PCE declined to 0.10% m/m, compared to a forecast of 0.20%.
SNB cuts rates by 25 bpbs as expected for the third time due to easing inflation. The inflation slowed to 1.1% in Aug and under the SNB target range 0-2%.
China’s policy-
The People’s Bank of China cuts policy rate by 30 bpbs, and the reserve requirement ratio by 50 bpbs. The Chinese stock market surged by 18% this week after PBOC action. China is planning to issue 2 trillion yuan in special sovereign bonds.
Economic data to watch
Eurozone
German Prelim CPI m/m
Core CPI Flash estimate y/y
US
ISM PMI (Oct 1st) and services PMI (Oct 3rd )
NFP (Oct 4th 2024).
