Dear Reader,

Today's overview of economic news and market action:

• • Risk appetite remained subdued yesterday …
  • US Treasury yields rose sharply after CPI printed slightly above the consensus …
  • The dollar was holding a firmer tone after the CPI Update also …
  • Sees EUR/USD open back below the midpoint of $1.05-1.06 … 
  • GBP/USD is operating down below the $1.22 threshold … 
  • EUR/GBP remains between 86-87p …
  • Today, EZ industrial production (Aug) and US consumer sentiment (Sep) are due …

 Strong Public Finances

Today’s budget contained a fresh package of cost of living support measures totalling €2.7bn that will be rolled out over the winter months. These are mainly taking the form of direct household payments and energy credits. The Government is also providing an additional €6.4bn in other spending increases and tax cuts for next year. 

Renewed downturn in manufacturing performance as lower export sales hit total order books

Subdued global demand conditions and customer destocking were factors holding back new business intakes. As a result, export sales resumed their downward trend in September, largely driven by falling spending by European clients.

Inflation on Downward Path

The ‘higher for longer’ outlook for interest rates has been the key factor behind the big movements in financial markets in recent weeks. 

The Road to Damascus

The ‘higher for longer’ outlook for interest rates has been the key factor behind major movements in financial markets in recent weeks.