WS #15002
The Dallas Fed Manufacturing Index for September came in at 9.8, beating the 6.0 consensus but declining from 11.6, indicating a slowdown but avoiding a recessionary signal. Meanwhile, ECB President Lagarde signaled that interest rates will remain at the upper neutral range, reinforcing a tight monetary policy stance. These developments suggest a resilient but slowing economy with persistent inflationary pressures, keeping rate cut expectations in check. Non-US investors now hold a record $24.32 trillion in American stocks, up 10% year-over-year, indicating strong international confidence in US equities despite geopolitical risks. This inflow supports the US market's resilience and suggests that foreign capital continues to view US assets as a safe haven or growth opportunity. The trend underscores the dollar's enduring appeal and the depth of US financial markets.
Macro Data & ECB Policy
The Dallas Fed Manufacturing Index for September came in at 9.8, beating the 6.0 consensus but declining from 11.6, indicating a slowdown but avoiding a recessionary signal. Meanwhile, ECB President Lagarde signaled that interest rates will remain at the upper neutral range, reinforcing a tight monetary policy stance. These developments suggest a resilient but slowing economy with persistent inflationary pressures, keeping rate cut expectations in check.
Non-US investors now hold a record $24.32 trillion in American stocks, up 10% year-over-year, indicating strong international confidence in US equities despite geopolitical risks. This inflow supports the US market's resilience and suggests that foreign capital continues to view US assets as a safe haven or growth opportunity. The trend underscores the dollar's enduring appeal and the depth of US financial markets.