Extends

• Societe Generale economists Anatoli Annenkov and Michel Martinez forecast that Euro area inflation will remain above target beyond 2027. • The analysts project headline inflation will peak near 3.7-3.8% while core inflation, which excludes volatile food and energy prices, will reach around 2.7-2.8%. • This persistent price pressure means the European Central Bank will likely raise interest rates this week and again in December.

• A federal judge extended a prohibition on Friday against the U.S. Postal Service implementing an executive order from President Donald Trump to limit mail-in voting. • The court order prevents the administration from restricting mail voting processes specifically during the upcoming midterm elections. • This ruling ensures that voters who rely on mail-in ballots can continue to use the service without the limitations proposed by the executive order.

Indira Talwani’s ruling presents major setback for president as first states begin to send out mail ballots for midtermsA federal judge on Friday extended her prohibition against the US Postal Service implementing Donald Trump’s executive order seeking to limit mail voting during the midterms, putting another major obstacle in the way of the administration as the first states begin sending out mail ballots.The preliminary injunction from US district court judge Indira Talwani replaces a temporary order she granted blocking the USPS plan. Continue reading...

• Asian stock markets are positioned for gains as oil prices continue to decline, providing relief to investors after persistent inflation and high yields pressured risk appetite. • Market attention is heavily focused on upcoming earnings reports from Nvidia, which are expected to serve as a key indicator for the tech sector. • LPL Financial chief economist Jeffrey Roach warns that while employment remains solid, fading expectations for income growth could hinder future consumer spending.

• President Donald Trump has extended the deadline for trade negotiations with Canada by three days to avoid imposing new 50% tariffs on Canadian goods. • The U.S. Chamber of Commerce has warned that such tariffs are economically illogical, citing pressures from inflation and the upcoming midterm elections. • Analysts, including Bloodworth, suggest Trump may be bluffing and will likely retreat from the threat to protect economic stability.

• The Euro (EUR/USD) has extended its rebound toward 1.1600, driven by elevated European yields and stabilizing US Treasury yields. • Simultaneously, the British Pound (GBP/USD) surged to its highest level since mid-May, trading above 1.3600. • The US Dollar is facing downward pressure following a US Treasury Department decision to double the size of liquidity support buyback operations for longer-dated nominal coupon securities.

• Asian equity markets declined today as a sharp selloff in semiconductor shares triggered a broader downturn across the region. • The bearish sentiment was driven by a combination of rising bond yields, escalating oil prices, and heightened Middle East tensions. • Investors are retreating from growth stocks due to mounting concerns over global inflation, increasing debt levels, and the impact of US monetary policy.