Outlook The United States has maintained its strength in the labor market , with unemployment surprisingly falling to 3.5%, its lowest level since 1969. This puts the Federal Reserve on track for another significant interest rate increase.
Supply Chain Activity in the US
U.S. supply chain activity experienced an increase for the first time since March, driven by higher inventories despite continued declines in shipping costs for six consecutive months. However, storage space remains limited.
Asia: Inflation in Tokyo and Bank of Japan Policy
In Tokyo, inflation accelerated for the fourth month in a row, reaching its fastest pace since 1992, excluding the effects of tax increases. This raises the Bank of Japan’s concerns regarding the need to adjust its inflation support.
Australia: Interest Rate Decision
Australia adopted an exceptional position among major nations, becoming the first to give up excessive interest rate increases, with an increase of a quarter of a percentage point. The justification included high household debt and the prevalence of variable mortgages, making the impact particularly significant.
Developing Markets: Inflation in Türkiye and Elections in Brazil
In Turkey, inflation rose to levels comparable to the 1990s, driven by central bank policies that negatively affected foreign investors. This increases pressure on inflation.
Brazilian assets appreciated after President Jair Bolsonaro was successful in the second round of elections against Luiz Inácio Lula da Silva. Investors applauded the president’s performance and speculated that his left-wing opponent could soften his position in the second round.
Europe: Falling House Prices in Sweden and Insolvency in the UK
In Sweden, the fall in house prices deepened in September due to rising interest rates and fears of high energy prices, resulting in lower demand.
The UK witnessed a rise in corporate insolvency in the second quarter, reaching its highest point since 2009. Rising energy costs were cited as a major concern, particularly in the construction, manufacturing, accommodation and catering, and wholesale sectors. and retailer.
World: Interest Rate Decisions in Various Countries
Australia became the first major central bank to move away from excessive interest rate hikes, with an increase of a quarter of a percentage point. At the same time, Israel’s central bank raised interest rates to the highest level since 2011. New Zealand, Ghana and Peru also raised interest rates, while Poland surprisingly kept rates unchanged.
