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Canadian Prime Minister Carney says there will some some bilateral deals alongside the USMCA.
Carney was in the US for talks with Trump.
Is this the best they could do?
This article was written by Eamonn Sheridan at investinglive.com.
French President Emmanuel Macron has opted to appoint a new prime minister instead of calling snap elections, a move that gives his administration breathing room as it seeks to steady France’s political and fiscal situation.
Headline on this earlier:
Wall Street Journal with more now:
Macron had been weighing dissolving the National Assembly following Prime Minister Sébastien Lecornu’s sudden resignation on Monday amid disputes over cabinet appointments. Instead, he instructed Lecornu to hold fresh talks with France’s divided parties to see whether a workable government could be formed to pass a budget before year-end.
After reporting back to the Elysée on Wednesday, Lecornu said progress had been made and that Macron could name a new prime minister within two days — a plan later confirmed by the presidency. “I told the president that the prospect of dissolving parliament was receding,” Lecornu said on national television, expressing confidence that “a path forward is possible.”
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Some market implications to eye:
FX: Political stability could offer mild support for the euro, though fiscal uncertainty remains a drag.
Bonds: Averted elections reduce near-term volatility in French sovereign debt markets.
Equities: Calmer political backdrop may reassure investors but fiscal challenges linger.
This article was written by Eamonn Sheridan at investinglive.com.
The Bank of England has cautioned that financial markets could face a sharp correction with potential spillover effects on the broader economy.
In its quarterly Financial Stability Report, published Wednesday, the central bank highlighted stretched valuations in equity markets—especially among technology firms benefiting from the artificial intelligence boom.
The BoE also cited several broader risks, including rising government borrowing, concerns over the independence of the U.S. Federal Reserve, and heightened geopolitical tensions. “Uncertainty surrounding the global risk environment raises the possibility that markets have underpriced adverse outcomes,” the report said, warning that a “sudden correction” could occur if any of these risks materialise.
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US equity markets didn’t pay this any attention, but if they ever do, some implications to watch out for:
Equities: Could weigh on sentiment toward global tech stocks and trigger profit-taking in AI-linked shares.
FX: Heightened risk aversion may support safe havens such as the yen, Swiss franc, and US dollar.
Rates: Concern over financial stability could bolster expectations for easier policy or bond buying if volatility spikes.
This article was written by Eamonn Sheridan at investinglive.com.
China’s Golden Week holiday has ended and the country’s markets reopen today.
Hong Kong markets have remained open, not so mainlanad China,
Its often quite dreary during the timezone here when China is on holiday, but not this time. Japanese politics have kep the yen, equities, and JGBs lively while gold has just kept on rising.
This article was written by Eamonn Sheridan at investinglive.com.
Spot gold ran above the $4000 in trading today reaching a high for the day at $4059.31. Buyers remain in firm control (see post here for clues that the trend may be over).
Spot Silver also extended to the upside, falling just short of the by for me which reached $40.83 bag in April 2011.
The US dollar moved mostly higher versus the major currencies. The exception was tge AUD where the greenback employed by -0.11%. It was also near unchanged versus the Canadian dollar.
The biggest mover was a rise of 0.51% versus the JPY as the buying continued in the USDJPY. The USDCHF also advanced by 0.46%.
Below are the changes of the USDs change vs the major currencies:
The NZDUSD moved to the lowest level since April 11 after the RBNZ cut rates by 50 basis points. The expectations was about 50-50 for a 25 basis point cut.
The EURUSD moved to its lowest level since August 27: testing the 61.8% retracement of the move up from the August 1 low at 1.1592 . The low for the day came in at 1.15977: just above that level.
The GBPUSD moved to its lowest level since September 26 testing a downward sloping trendline, and a corrective swing high from the same date at 1.33695. The price Balanced back higher toward the 1.3400 level currently.
There were no economic data releases today. The US government shutdown is in day 8 with no solution in sight. The U.S. Treasury did auction off 10 year notes which was met with average demand. Yields in the US are ending the day higher after being lower at the start of the US session.
US stocks continue to ignore the problems in Washington with the shutdown now in day 8. The S&P and NASDAQ indices both closed at record levels once again. The Dow industrial average closed unchanged.
The FOMC minutes showed that most participants agreed it would likely be appropriate to ease policy further over the rest of the year. Almost all members supported the 25bp rate cut in September, though a few saw merit in leaving rates unchanged, and one argued for a 50bp cut.
Some noted that financial conditions may not be particularly restrictive, suggesting a cautious approach was still warranted.
On the economic outlook, most participants judged downside risks to employment had increased, while upside risks to inflation had diminished. Fed staff revised GDP growth projections higher for 2025–2028, though risks remained balanced. Finally, a few participants highlighted that the standing repo facility would help keep the funds rate within its target range and ensure smooth market functioning without disrupting quantitative tightening.
Oil inventory data was mixed with a build in crude oil stocks while gasoline and distillate showed drawdowns. The price of crude oil is trading up $0.68 at $62.41.
This article was written by Greg Michalowski at investinglive.com.
The broader stock indices – the S&P and NASDAQ – saw record levels once again. The Dow industrial average was unchanged.
The gains were led by the NASDAQ index with a rise of 255.02 points or 1.12%. That was the largest gain since August 22 when the index rose by 1.88%.
The S&P index rose by 39.13 points or 0.58% at 6753.72. The Dow industrial average fell -1.2 points or 0.0% at 46601.78.
AMD led the charge once again with a gain of 11.34%. For the the last week, the price is up 43.58%.
Other bigger gainers included the builders of servers for the chips
Other gainers included:
This article was written by Greg Michalowski at investinglive.com.
French President Macron says he will be naming a new Prime Minister within the next 48 hours
More:
Elysee report.
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Political turmoil in France is a weight on the euro at present. Incremental good news is supportive. Still, December 31 is a looooooong way off.
This article was written by Eamonn Sheridan at investinglive.com.
Plenty of Federal Reserve officials speaking in the hours ahead:
Earlier:
This article was written by Eamonn Sheridan at investinglive.com.
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