This Week's Chart, Next Week's Markets
Demographics, trade, inflation and Congress
Whenever you hear someone speak of China’s inevitable rise and America’s inevitable decline, ask them to explain this.
As for next week’s markets, watch for:
Tuesday: The United Nations General Assembly (UNGA) opens with small speeches from big people. Brazilian President Luis Inácio (Lula) da Silva kicks it all off, to be followed immediately by President Donald Trump, who slapped 50% tariffs on Brazilian imports. Markets will be looking for news on Trump’s trade intentions (especially with China), European plans to stand up to Russia and how Middle East leaders plan to react to Israel’s military escalation in Gaza.
Wednesday: U.S. home sales will offer fresh fodder for the inflation/recession debate. There’s a lot of enthusiasm about the recent drop in mortgage rates, offering a boost to the housing market. But borrowing costs above 6% still look expensive.
Thursday: Tokyo Core Consumer Price Index has been slowing in recent months and hit 2.5% in August, but inflation remains above the Bank of Japan’s target, and the pressures will continue for tighter policy.
Friday: Four more days until the U.S. government shuts down. Congress may have delivered a miracle early funding extension, but don’t hold your breath.