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EURUSD, stocks lower. Both have one or maybe two red bars left before support levels.
EUROPE
Euro area: ECB
shouldn’t panic about growth – Nordea
ECB
policy makers are out saying that the ECB could expand the asset purchases. It
is our long-held view that QE will go on beyond September 2016 because inflation
is unlikely to be close enough to the ECB’s target by then. By contrast, we are
not convinced that the ECB will accelerate QE. Inflation will pick up soon due
to base effects and the growth outlook is not that bad, despite the China risk.
OTHER
Global: Are markets
experiencing two Minsky Moments? – Nordea
Markets have been experiencing unwinds of USD carry trades for the past
year. This represents a "Minsky moment" in the EM space. What’s more
intriguing is the potential for another - much more problematic -
"Minskian chicken" coming home to roost in China.
FX: ECB’s Fed-ache – Nordea
After the dovish pass by the FOMC in September, pressure is rising on
other central banks to do more. Markets might start to discount ECB QE2 in
November. EA’s CA surplus is EUR-supportive, but is mostly recycled. What if
risk appetite improves?
REGULARS
Morning MoneyBeat Asia – WSJ
U.S. Stocks Rise, Regain
Footing
Morning MoneyBeat Europe – WSJ
Fed to Markets: Rate Rise This Year
Still on the Cards
Morning MoneyBeat US – WSJ
Fed Officials Repeat
2015 Is In Play
Danske Daily – Danske
Bank
Euro rates update – Nordea
Eye-Opener – Nordea
Chinese PMIs to reflect continued
weakness * Euro-area yields higher, with long end underperforming * SEK under
pressure after otherwise neutral 2016 budget bill
Morning Markets – TF
Last week's dovish
Federal Reserve decision has left both the US and the UK hunting for hopeful
macro signals as the conditions for monetary normalisation struggle to remain
in view.
Daily Shot – TF
The shares of
Volkswagen, which only in July was said to have taken over Toyota as the
world's largest car maker, plunged by almost 20% following the companies
manipulation of emission data in the US. When it comes to the Fed a rate hike
this year is still possible.
Daily Press Summary – Open
Europe
Visegrad summit rejects
migrant quotas as Prague threatens to take EU to court *
Danish PM backs
Cameron’s push for EU reform * Tsipras sworn in as Greek Prime Minister for the
second time this year * Conservative Party to remain neutral in EU referendum
campaign *
Labour donor Mills:
Without EU reform Labour risks precipitating ‘leave’ vote * France seeks
greater clarity over EU reform agenda * US Chamber of Commerce not impressed with
Commission’s proposal for new TTIP dispute resolution mechanism * French
Economy Minister under fire for challenging civil service perks * Commission
considers easing capital rules to allow insurance firms to invest in
infrastructure * Italy complains higher bank capital charges at odds with loose
monetary policy * Commission set to launch its own investigation into VW car
emissions * Merkel and Hollande to give joint address to the European
Parliament
Brussels Playbook – Politico
Migration meetings —
Parliament renovation spat — TTIP trauma
US Open – ZH
Futures Plunge On
Renewed Growth, Central Bank Fears; Volkswagen Shares Crash As Default Risk
Surges
Frontrunning – ZH
The euro is deflating very quickly
now, with the single currency weakening across the board. This is a sign that
the euro carry trade may be back on the front burner, though we’ll need a
stronger surge in risk appetite for this theme to have legs.
The ECB's nagging
reminders that it might deploy another volley of QE helped send the euro
spinning lower across the board last night, especially against the USD. But the
narrative here is less about dollar strength and more about euro weakness.
FINNISH
Öljyn
hinta pitää Norjan ahdingossa * Eilen äänessä olivat Fedin Bullard sekä
Lockhart * Korjasimme ennustetta Ruotsin keskuspankin ohjauskorosta | Euro
heikkeni laajalla rintamalla