On the data front, US consumer sentiment fell in September as worries about employment mount. S&P upgraded Spain’s credit rating from A to A+ citing an improvement in the country’s external balance sheets resulting from private sector deleveraging. Meanwhile, Fitch downgraded France’s rating from AA- to A+ over concerns of debt stabilization.
This week the focus will be on the Fed’s monetary policy decision. Markets are pricing in a 25bp interest rate cut, following weak jobs data and a limited rise of inflation in the past months. Investors will be attentive to any indications from chair Powell about the path of monetary policy in the coming months.
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