Rise and shine everyone.

Happy Monday!

China and Hong Kong continue its rally this morning heading into a market holiday for them. I’m inclined to think that this rally has legs, at least for the next couple of months. The Shanghai Composite has technically entered a bull market, despite softer PMI numbers this morning.

Over in Japan, we’re seeing equities come under pressure, as yields rise. The new PM has a hawkish view and the market is pricing that in. I wrote an article this morning about his policies and the market impact.

Today’s focus in the US will be Fed Chair Powell speaking about the state of the economy at 1:55 pm. For the rest of the week, we’ll get labor data and the Employment Report on Friday, which could determine whether we see another jumbo cut in November. It’s still unlikely but, at least we get to know what’s going on.

Over in Europe, we got final GDP growth numbers for the UK at 0.5% QoQ coming in slightly below estimates of 0.6%. Inflation in Italy continues to subside - headline inflation is now 0.7%!! Numbers for Germany are to be released at 8 am ET. Regional numbers have mostly come in lower.

US Equities are pulling back this morning, alongside commodities. It is the month-end, so we’re likely to see some turbulence. It is also the quarter-end, and a time for Mutual Fund rebalancing.

Chart of the Day

Global Home Prices are on the rise again.

Calendars

(news taken from Reuters, FT, Bloomberg; Calendar from Trading Economics)