World Economic News, at a glance


- Retail Sales just doubled estimates at 0.4% along with a bonus revision in the month previous to solidify the overall staying power of the consumer. 

- The good news may be enough to inch the SP500 SPX closer to its all-time high of 3,027.98 which is now less than 20 points away. 

- The ECB announced plans to cut its bank rate by 10 basis points to an unfathomable 0.50% yesterday as stagnant growth persists in much of the region. 

- Monthly QE purchases will begin in November at a rate of 20B Euros in an attempt to jumpstart the latency. 

- European markets appear to be ending the week on a positive note other than the UK which is off modestly as the Brexit hash-out continues.  

- Encouraging news on the trade front indicated that China just exempted some agricultural products like soybeans and pork from enforceable tariffs as sure appeasement to further negotiations. The largest soy purchase since June was also ordered which will hopefully open the floodgates to more sizeable purchases.  




- The Japanese Nikkei has approved of the latest efforts considering a 9th straight winning session now secured. 

- Overall, volatility has contracted measurably over the past weeks with a 14 handle, registered in today’s session for a 4th consecutive drop in the CBOE Volatility Index (VIX). 

- The yield on the 10-year Treasury Bond TNX continues to snap back with a current reading of 1.836% after the latest economic figures broke. A higher close on the day would mark a 5th straight jump in rates after bottoming at 1.429% just last week. 

- Oil futures /CL remains little changed with crude sitting at $55.50 a barrel despite agreements from major producers to keep production in check ahead of the weekly rig count.  

- Gold /GC has held its ground the last few sessions with a minuscule gain appearing ahead of the open as central banks grapple with the reality of negative rates. 

(Text is taken from TradeWise Market Blog.)

Is this the main reason for the latest, and desperate, Trump tweet "rate cuts to zero"? A recession is likely coming, and could cost its re-election next year. Now he is open to an interim trade deal with China, and markets react positively with that news, touching the SPX its all-time highs.