All hands to the pump

Today's news headlines: 

‘Scholz and Social Democrats win tight German election’. The Social Democrat Party has secured a narrow victory in the German election, with the party securing 25.7% of the votes according to preliminary releases. SPD leader Olaf Scholz is expected to seek a coalition government with the Greens and liberal Free Democrats, as the Christian Democratic Union suffered its worst results in the party’s history. The coalition talks are expected to last for weeks or possibly months, as the question of whether the Greens/Free Democrats will prefer pairing up with an SPD or CDU government still remains. (Financial Times)

‘Johnson prepares to call in army as panic buying drains UK petrol pumps’. A scarcity of tanker drivers and a jump in panic buying has led to a fuel shortage in the UK, with an estimated 50-85% of all independent service stations reportedly running dry. UK Prime Minister Boris Johnson is drafting a response that could see members of the armed forces driving fuel tankers across the country. Around 5,000 temporary visas are also expected to be issued to new HGV drivers in order to tackle the shortage in the industry. (Financial Times)


Today

Stocks finished last week on a mixed note: the FTSE closed 0.38% lower and the S&P 500 nudged 0.15% as markets kept one eye on the Evergrande story. Major pairs have started the week relatively unchanged as EUR/USD hovers around the $1.17 level.

Events

Japan Services Producer Price Index y/y: 1.0% vs 1.1% last month
European Central Bank President Christine Lagarde speaks: 12:45PM
Federal Open Market Committee member Charles Evans speaks: 1:00PM
US Durable Goods Orders m/m: 1:30PM
FOMC member John Williams speaks: 2:00PM and 5:00PM
FOMC member Lael Brainard speaks: 5:50PM
Bank of England Governor Andrew Bailey speaks: 7:00PM


Interbank rates:

GBP/USD – 1.3662
GBP/EUR – 1.1658
EUR/USD – 1.1719
USD/CAD – 1.2626

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