Equities | Europe | Monetary Policy & Inflation | US
Markets to Watch This Week: A New PM by the PM?
- By Bilal Hafeez and Ben Ford
- 3 min read
We standardise WoW price changes across different markets to allow for cross-market comparisons.
Market Moves
In the US, talk of a Federal Reserve (Fed) pivot has returned. Nick Timiraos, the unofficial outside voice of the Fed, suggested in the Wall Street Journal that a 50bp December hike was more likely than the market had priced. It sparked a 20bp fall in US two-year yields. Dominique continues to expect 75bp hikes at the November and December FOMC meetings.
In the UK, Liz Truss announced her resignation as prime minister despite previously claiming to be a ‘fighter, not a quitter’. She said she could not deliver her mandate. Markets took this positively for GBP/USD as they processed who would take office next. Penny Mordaunt became the first to chuck their name in the hat; Rishi Sunak followed. Our Hive Minds chat favours the latter, and they look to be right.
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