Fed in a hole: World market themes for the week ahead

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Fed in a hole: World market themes for the week ahead GlobeInvestor

This translation has been automatically generated and has not been verified for accuracy.On Wednesday, the U.S. Federal Reserve releases the minutes of its last meeting, revealing what policymakers said about the flattening Treasury yield curve and the strength of support for July’s quarter-point rate cut.

Meanwhile, strong July retail sales and gangbuster Walmart earnings indicate the economy’s all-powerful consumer is undaunted. That argues against the Fed doing much more. Take the United States. Manufacturing there slowed to a near 10-year low in July, to the neutral 50-mark on the PMI index yet services accelerated to 53, the IHS Markit data showed. But readings from the Institute for Supply Management suggested services were about to take a hit, with new orders hitting three-year lows.

Meanwhile 5-Star politicians themselves are discussing forming a coalition with the opposition Democratic Party. Next week’s trade data is expected to show exports fell for the eighth month in July, while a Reuters manufacturing sentiment index should reflect rising concerns.

 

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