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Some further evidence the Fed will hike in December, a big day for the U.K. economy, and Trump gains in swing states. Here are some of the things people in markets are talking about today.
Fed points to December
The market-implied odds that the Federal Reserve will hike interest rates in December rose to 78 percent following yesterday's statement by the U.S. central bank, accompanying its decision to keep rates unchanged. The Fed said that it only needed "some" further evidence that inflation and employment were on track before tightening policy. The dollar fell in the aftermath of the statement and U.S. stocks declined for a seventh day in a row, the longest losing streak in five years.
Big day for the U.K.
At 8 a.m. ET the Bank of England will announce its latest monetary policy decision, with the vast majority of analysts surveyed by Bloomberg expecting no change in rates or the pace of asset purchases. With the fall in the value of the pound since the Brexit vote, policymakers at the BOE are facing a delicate balancing act amid low growth and rising inflation expectations. Ahead of that meeting, the pound spiked as high as $1.2448 after the High Court in the U.K. ruled against the government in a lawsuit on whether triggering Article 50 to begin the Brexit process would require a vote in parliament. The U.K. government said it would appeal the decision to the Supreme Court.
Trump gains
With only days to go until the U.S. presidential election, Republican nominee Donald Trump is ahead in some swing states and narrowing the gap in others. While Hillary Clinton's once-comfortable poll lead has been reduced after the FBI announced it was reviving its investigation into her use of a private email server, she still remains the favorite to win the election on Nov. 8.
Markets mixed
Overnight, the MSCI Asia Pacific excluding Japan Index fell 0.2 percent as investors remain on edge ahead of next week's U.S. election. Japan's markets were shut for a holiday. In Europe, the Stoxx 600 Index was 0.5 percent higher at 6:12 a.m. ET as stocks rebounded in the wake of the Brexit court ruling. S&P 500 futures slipped 0.1 percent.
Pound slumps
Not the British pound, for once, but the Egyptian one. The country took the unprecedented stop of allowing its currency to free float, while its central bank hiked rates 300 basis points. The benchmark EGX 30 Index soared 8.3 percent after the decision was announced, with the measures designed to tackle a dollar shortage that has hurt economic growth. The measures also brings Egypt closer to securing a $12 billion loan from the International Monetary Fund.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Gold climbs above $1,300.
- Hedge fund clients dump humans for computers and still lose.
- Deutsche Bank thinks this measure of household finances could spur the next U.S. recession.
- Nothing like the threat of treason to make Turkish banks cut rates.
- Vancouver home sales fall 39 percent as new rules chill market.
- Super-carry goes ballistic as ruble's not atrocious.
- Cubs win.
To contact the author of this story: Lorcan Roche Kelly in Dublin at lrochekelly@bloomberg.net.
To contact the editor responsible for this story: Tracy Alloway at talloway@bloomberg.net, Joe Weisenthal
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