By Mike Dolan
LONDON (Reuters) – What matters in U.S. and global markets today
By Mike Dolan, Editor-At-Large, Finance and Markets
Global stocks pushed higher on Tuesday as U.S. rate cut fever built and a wave of European merger activity helped offset the week’s political upheavals in France and Japan.
With U.S. long-term bond yields sliding to four-month lows on Monday ahead of the week’s big debt auctions, the dollar fell to a seven-week low as expectations of big downward revisions to U.S. jobs data through last March reinforced bets on deeper Federal Reserve rate cuts. U.S. stock futures nudged higher, after the tech-heavy Nasdaq clocked a record close on Monday. Gold extended its record-breaking rally.
In today’s column, I discuss whether the ECB’s complex structure may shield it from the political pressures facing other central banks – and whether that’s a good thing.
Today’s Market Minute
* French President Emmanuel Macron is seeking his fifth prime minister in less than two years after opposition parties united to kick out centre-right Prime Minister Francois Bayrou over his unpopular plans for budget tightening.
* London-listed miner Anglo American said on Tuesday it has agreed a merger with Canada’s Teck Resources in what would be the biggest mining sector M&A deal in more than a decade.* Elon Musk’s SpaceX said on Monday it will buy wireless spectrum licenses from EchoStar for its Starlink satellite network for about $17 billion, a major deal crucial to expanding Starlink’s nascent 5G connectivity business.
* Tesla’s U.S. market share dropped to a near eight-year low in August as buyers chose electric vehicles from a growing stable of rivals over the aging lineup offered by CEO Elon Musk’s company, according to data from research firm Cox Automotive shared exclusively with Reuters.
* Long-term bond yields spiked globally last week, stoking fears about the ability of governments to finance their deficits. Sensible fiscal policies in Europe may stop this “doom loop” in 2026, writes Panmure Liberum investment strategist Joachim Klement, but there is little reason to believe the U.S. will be so lucky.
* The recent wave of Ukrainian drone attacks on Russian oil refineries and export facilities could boost global refining profit margins – particularly those in the U.S. – just as the peak summer demand season fades. Read the latest from ROI energy columnist Ron Bousso.
Chart of the day:
The New York Fed’s August survey of consumers showed expectations of finding a new job within three months of losing one at the lowest in over a decade, while inflation expectations over one and three years were 3% or above.
Today’s events to watch
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(The opinions expressed here are those of the author, a columnist for Reuters)
(By Mike Dolan; Editing by Helen Popper)
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