 Risk-on sentiment returned to global markets again in early US trading, driven by lower-than-expected inflation data. While annual PCE core inflation edged up to 2.7%, the monthly increase was a modest 0.1%. This tamer inflation growth suggests that underlying price pressures would, at least, not obstruct Fed's to another aggressive rate cut at its next meeting. However, upcoming non-farm payrolls and CPI data will still play a decisive role in Fed’s final decision. In Japan, Yen staged a sharp turnaround after Shigeru Ishiba unexpectedly secured leadership of the ruling Liberal Democratic Party, setting him on the path to become the next Prime Minister. Known for his hawkish monetary stance, Ishiba's ascent has intensified speculation that BoJ may implement another rate hike in December. However, the political landscape remains uncertain. There is a possibility that Ishiba may call for a snap general election to secure a stronger mandate from voters, and that could delay any BoJ action until 2025.... |
