President Trump’s executive order on healthcare, the Iran nuclear agreement, and news about North Korea preparing for a launch ahead of US–South Korea military exercises failed to trigger higher volatility.
FOMC members noted that labor market conditions could take a hit due to the hurricanes in August and that this was evident in the October non-farm payrolls report.
Not all members of the FOMC, according to the minutes of the meeting, were on the same page with respect to a December interest rate hike.
The September meeting minutes indicated that the members underscored that the reduction in the Fed’s balance sheet would be gradual.
In this series, we’ll discuss the September FOMC meeting minutes in detail and decide how the meeting minutes have changed the outlook for markets.
The Job Openings and Labor Turnover Survey is a forward indicator of economic activity. The US Fed takes this measure into consideration when making monetary policy decisions involving interest rates.
The Japanese yen (JYN) depreciated for the fourth week in a row last week.
The British pound (FXB) depreciated more than 2.0% against the US dollar for the week ended October 6, 2017.
It’s possible that political pressures could keep the euro under pressure as the economic calendar remains light in the Eurozone.
Bond traders have few reasons to be happy this week. Chances for tax reforms continue to increase with the US Senate moving on a path that would mean only 51 votes could be required to pass the bill.
The US Dollar Index (UUP) closed at 93.64 last week, a gain of 0.82% and the fourth consecutive weekly rise. The dollar didn’t react to a loss of 33,000 jobs in September.
For the week ended October 6, 2017, the S&P 500 index (SPY) closed at 2,519.36, recording gains of 0.80% for the week and the sixth straight record close.
Stock market volatility remains at lower levels despite an uptick in global uncertainty. The war of words with North Korea, political uncertainty in Spain, and elections in Japan are keeping global uncertainty alive.
US-based companies pay, on average, a 27% tax on income.
Equity markets across the globe appear to welcome the idea of a US corporate tax cut.
The path to President Trump’s tax reform plan could be troubled by the prospect of a ballooning deficit because the plan offers generous tax cuts.
The Trump administration’s central idea is to reduce the taxes paid by corporations and simplify the federal tax code—despite the projected effects on the deficit.
As per the September ADP Employment Report, there was a major drop in the number of jobs created in the trade, transport, and utility sector.
As per the September ADP National Employment Report, the US private sector added 135,000 jobs during the month. The figure is a sharp decrease from 228,000 in August.
The most important US nonfarm-payrolls data is scheduled to be reported on Friday, October 6. Consensus expectations are for an addition of 93,000 jobs in September.