Narrow margins

Today's news headlines:

‘GOP eyes narrow control of House as Democrats flip a Senate seat’. With polls closed across much of the US, the midterm elections might yield a tighter result than expected. As things stand, the Republicans are on course to control the House by a small margin, while Democrats flipped a key senate seat in Pennsylvania. The mixed verdict delivered by voters reflects concerns over the underlying inflation picture and a nation divided on many major cultural and social issues. Markets will be watching the remainder of the results, which will affect the legislative capacity of the Biden government. (Bloomberg)

‘China producer prices in deflation for first time since 2020’. A drop-off is hitting China in all areas as producer prices fell into deflation for the first time in nearly two years, amid a slide in global commodity prices. Consumer inflation also moderated as weak demand kept prices low, while core inflation remained muted. The soft figures suggest that the government will need to intervene further to support the economy while its Covid Zero strategy continues to hit domestic activity. (Bloomberg)


Today

US equity futures fluctuated while the US Dollar remained steady ahead of the US midterm results from a tightly contested race. Still fixated on inflation, markets await tomorrow’s US CPI data for clues on future Fed policy.

Events

MPC Member Haskell speaks: 8.00AM
US Crude Oil Inventories: 10.30AM
MPC Member Cunliffe speaks: 11.30AM
US midterm results: All day
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