Atlanta Federal Reserve (Fed) President Raphael Bostic told the Wall Street Journal on Monday that he sees little reason to cut rates further for now, per Reuters. Source: fxstreet.com (Read Full Article)

Prior 49.8Services PMI 52.5 vs 49.5 expected Prior 49.3Composite PMI 52.4 vs 50.6 expected Prior 50.5The manufacturing PMI missed expectations but we had a big jump in the services PMI. The key part here is that “the overall economy is growing at its fastest clip in 16 months” and although the agency is more cautious on this part, there are reasons to expect improvement ahead given Fed rate cuts.Comment:Commenting on the flash PMI data, Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said:“Trouble seems to be brewing in manufacturing. Sure, companies have been ramping up production for seven straight months, but new orders took a nosedive in September. If demand, both at home and abroad, keeps dropping, it won’t be long before firms hit the brakes on production, too. “The services sector picked up a bit of steam in September. It is back in growth territory, expanding at the joint-fastest pace we have seen all year. That is a turnaround after five months of mostly declining activity. Still, companies are not exactly bursting with confidence. They have actually dialled back their optimism a notch. Given that orders, including those from abroad, are falling again, it is not hard to see why. “Costs remain a headache for service providers. In September, input costs, which include wages and energy, rose at the fastest rate since April, pushing services input price inflation further above the long-term average. At least services firms managed to pass some of those higher costs on to their customers. Even so, profits are likely under pressure, which probably explains why jobs in this sector have been cut for two months running. “The overall economy is growing at its fastest clip in 16 months. But do not get too comfortable. Orders are under pressure, especially in manufacturing but also in services, signalling another slowdown could be on the horizon. Despite the promise of billions in capex and investment incentives, business expectations for the year ahead are pretty muted. That is unlikely to change until these investment projects really get off the ground and become visible, not just here and there, but across the board.” This article was written by Giuseppe Dellamotta at investinglive.com. Source: investinglive.com (Read Full Article)

The Global X Silver Miners ETF (SIL), launched in April 2010, tracks the Solactive Global Silver Miners Total Return Index, offering exposure to silver mining companies like Wheaton Precious Metals and Pan American Silver. Source: fxstreet.com (Read Full Article)

Prior 50.5Manufacturing PMI 49.5 vs 50.7 expectedPrior 50.7Composite PMI 51.2 vs 51.1 expectedPrior 51.0The readings this month were a mixed bag as the services sector pulled up business activity while the manufacturing sector slumped back into contraction. At the balance, there was still marginal growth in the overall euro area private sector but nothing to really shout about. The German economy has now sort of dragged itself out of the mud but in turn, France is the one falling into the rut. The ECB might be on pause mode but the report here shows further signs of cooling in price pressures, so that will be something to note. HCOB mentions that:“The eurozone is still on a growth path. Manufacturing output has increased for the seventh month in a row, and business activity in the services sector has been expanding almost continuously since February 2024. That said, we’re still a long way from seeing any real momentum. Just consider that the Composite PMI, which combines activity in both manufacturing and services, hit a modest 51.2 points and reached with this a 16-month high. The outlook for manufacturing is looking a bit cloudy. Production is still growing, but the pace is being dragged down by France, where the government shake-up in early September likely threw a wrench into companies’ production plans. Apart from this, hopes for an acceleration in growth are not justified as new orders have dropped significantly in both Germany and France. In the medium term, higher defence spending could drive up demand for industrial goods. A more immediate impact might come from Germany’s so-called investment booster and the infrastructure package. Still, according to the survey, confidence in rising output has actually dipped in both Germany and the eurozone overall. Hiring, which was already pretty sluggish this year, has now come to a halt. That’s due to slower hiring in services and faster job cuts in manufacturing. Germany, in particular, has been a drag here. It is possible that the eurozone’s official unemployment rate, which fell to a seasonally adjusted 6.2% in July, has now bottomed out. Cost inflation in the services sector, which the European Central Bank watches closely, has eased slightly but remains unusually high given the fragile economic backdrop. Selling prices have cooled more noticeably, which might just prompt the ECB to consider whether a rate cut before year’s end could be back on the table.” This article was written by Justin Low at investinglive.com. Source: investinglive.com (Read Full Article)

The Canadian Dollar (CAD) trades on the back foot against the US Dollar (USD) on Monday, with USD/CAD hovering around 1.3808 at the time of writing. Source: fxstreet.com (Read Full Article)

Prior 54.2Manufacturing PMI 46.2 vs 47.1 expectedPrior 47.0Composite PMI 51.0 vs 53.0 expectedPrior 53.5Key Findings:Private sector output expands at slowest pace since MayComment:Chris Williamson, Chief Business Economist at S&P Global Market Intelligence: “September’s flash UK PMI survey brought a litany of worrying news including weakening growth, slumping overseas trade, worsening business confidence and further steep job losses. “The only good news is perhaps that, just as the Bank of England grows increasingly worried about persistently elevated inflation, the PMI indicated that price pressures have moderated in September. Companies reported one of the smallest increases in prices charged for goods and services seen since the pandemic. “With the weakening of business activity growth to a rate consistent with the economy almost stalling, and around 50,000 job losses being signalled by the PMI again in the three months to September, alarm bells should be ringing that the economy is faltering, which could help shift the policy debate at the Bank of England back towards a more dovish stance. “However, amid talk of further tax rises being needed in the Budget later this year, it’s not surprising to see that business expectations have worsened again in September, and in the absence of an improvement in confidence, it’s unlikely that the economy will make any strong gains in the months ahead irrespective of the outlook for interest rates.” This article was written by Giuseppe Dellamotta at investinglive.com. Source: investinglive.com (Read Full Article)

Eurozone Consumer Confidence above expectations (-15.3) in September: Actual (-14.9) Source: fxstreet.com (Read Full Article)

St. Louis Fed President Alberto Musalem explained on Monday that he backed last week’s rate cut, describing it as a precaution to safeguard the job market. At the same time, he cautioned that with inflation still running above the Fed’s 2% goal, there might not be much room left for further cuts. Source: fxstreet.com (Read Full Article)

The gold train marches on. There’s not much else to say really. From earlier: Gold looks poised to close out September in style This article was written by Justin Low at investinglive.com. Source: investinglive.com (Read Full Article)

The Euro (EUR) steadies against the US Dollar (USD) on Monday, halting a three-day losing streak as the Greenback trades under mild pressure. At the time of writing, EUR/USD is trading near 1.1765 during the American session, easing slightly from its intraday high of 1.1788. Source: fxstreet.com (Read Full Article)