Breakfast Bites - Lots of Macro

Rise and shine everyone.

There’s a lot going on as we wrap up the week.

On the Macro front, we had the ECB cut rates by 25bps yesterday, the first back-to-back rate cut. This obviously didn’t come as a surprise because they had been telegraphing it. Given that inflation is within 2% and the economy is actually slowing down considerably, this was probably the right course of action.

We also got US Retail Sales numbers yesterday. Seemingly, these numbers came out stronger than expected and that’s got rate traders reducing rate cut bets for the Fed.

It’s also been a busy morning in Asia. China published GDP growth numbers that came in at 4.6% for Q3 vs. 4.7% in the previous quarter. So growth is slipping and definitely below the Government’s 5% target. Industrial production improved but home prices slipped further. When you look at the chart, it’s actually quite alarming.

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