Daily digest market movers: Comments underway

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  • China’s government is weighing whether to let local governments issue bonds to buy homes, according to Bloomberg. 
  • At 12:55 GMT, the Redbook Index for the week ending August 16 is set to be released. The previous reading showed a 4.7% increase over a one-year period.
  • In the runup towards Jackson Hole, nearly all Federal Open Market Committee (FOMC) members will have a window of opportunity to have their say on monetary policy. This Tuesday two members are set to issue comments:
    • Federal Reserve Bank of Atlanta President Raphael Bostic gives some remarks at the Atlanta Fed's Payment Inclusion Forum in Atlanta.
    • Federal Reserve Vice Chair for Supervision Michael Barr participates in a discussion about cybersecurity at the Joint Financial and Banking Information Infrastructure Committee-Financial Services Sector Coordinating Council Meeting in Washington, D.C.
  • Asian equity markets are mixed, with Japanese indices up over 1% while Chinese equities are on the back foot. European and US equities are continuing the positive tone from Monday. 
  • The CME Fedwatch Tool shows a 77.5% chance of a 25 basis points (bps) interest rate cut by the Fed in September against a 22.5% chance for a 50 bps cut.  Another 25 bps cut (if September is a 25 bps cut) is expected in November by 59.3%, while there is a 35.4% chance that rates will be 75 bps below the current levels and a 5.2% probability of rates being 100 basis points lower. 
  • The US 10-year benchmark rate trades at 3.87% and is looking for direction after last week’s dip. 


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