Talking Points:
• PMI figures offer a proxy for global GDP through October, and the picture is uneven
• US equities finished another volatile day at fresh record highs while other sentiment benchmarks trail
• Monetary policy comes back into focus Tuesday with the ECB, RBA and SNB leading the way
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The top two fundamental themes of the financial markets - risk appetite and divergent monetary policy - continues to shift for importance. Where the S&P 500 seems to be edging ever closer to its previous record high, other sentiment-oriented assets refuse to conform to the optimism. Meanwhile, the docket continues to produce the type of scheduled event risk that feeds divergent monetary policy expectations. Over the past two weeks, the Fed kept open the possibility of a December hike, the ECB indicated it would consider a December stimulus upgrade and the BoJ disappointed with upgrading its own QE program. In the upcoming session, we have the ECB President speaking, the RBA deliberating on rates and the SNB President potentially giving an indication of how he expects to keep pace with his European counterpart. That is just a taste of the event risk due this week. We look at the pairs moving now and those set to run with the right encouragement in today's Trading Video.
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