evening wrap

market vibes

September 24…)

A very busy day in New York.

China’s entry into the rate cutting race sparked an immediate surge in copper prices. As NY got underway LME was flying, Comex copper was +12 big handles. USD/CNH made new lows with authority. 

Early this morning, ECB’s Meuller said it is reasonable to expect rate cuts and Oct ECB cut traded 50/50 according to BBG. BOE’s Bailey said he doesn’t expect “very low” rates. Boom. The Pound took off higher against the dollar. Concurrently Ueda said, “the financial market (meaning Japan’s) is still unstable.” The Yen weakened to 144.

Later in the NY session BOC’s Macklem said “reasonable to expect more rate cuts. Mexico’s YOY inflation fell to 4.66%, nowthey are talking rate cuts. By 9:00 AM EDT Michelle Bowman was on the wires restating her dissent for the .50 cut for the umpteenth time since the meeting last week.  

As an aside this unrelated item caught my eye. Trump/ Harris gambling has topped a record $1 billion and may be shut down. Apparently, there is a movement to put political gambling on the futures exchanges. "From the CFTC's perspective, this case will determine whether there will be 'election gambling' on U.S. futures markets," the law firm WilmerHale wrote in a briefing on the case last week. 

In the markets 

2/10s ripped higher as the curve continues to steepen 

2/10s with DXY inverted and overlaid. Steeper and weaker remains very tight.  

In other markets metals were hot.