Italian President Mattarella weights options in hope to form new coalition Government
PM Johnson says Merkel to budge on Brexit
Trump excluding Tax cut as the economy is strong
Bearish Oil DOE data
Not a whole lot has changed since yesterday. After the resignation of Italian PM Conte it is time for President Mattarella to weigh all options among parties to form a coalition government. Very contained reaction in BTP and EUR as market discounts a lower chance of a snap election with a technocrat government or PD-M5S led new coalition. Not too sure to agree with it at least in the medium-long term. Remaining in Europe, today's trip of UK PM to Berlin conclude without a substantial outcome as Johnson reiterates Brexit due date on 31st October if Europe does not accept concession over Irish border. Trump keeps adding pressure on the FED ahead of tonight FOMC minutes and Jackson Hole symposium.
Global equities extend higher ahead of tonight FOMC minutes as market is confident Powell will commit to further cuts. SP500 remains below yesterday high ahead of crucial week for central banks delivery.
FX space traded choppy amid lack of fresh catalyst. EUR remains contained into this week range. GBP traded choppy amid lack of developments on the Brexit front Crude Oil pairs back overnight gains as DoE data shows lower than expected draws - still above the 56 level. Gold traded choppy amid lack of fresh catalyst.
If you missed the morning briefing from the desk click HERE