1. The UK requires the EU to limit the back-stop mechanism to 4 years
2. The market is growing expectations of another reduction in interest rates in the United States
EU leaders are considering giving the UK certain concessions that will allow ratification of the new Brexit agreement. The option with setting a time frame for the backstop mechanism is being considered. Boris Johnson requires the EU to limit backstop for 4 years. If EU countries do not agree with these proposals, the UK intends to leave the EU on October 31 without an agreement.
Simultaneously several major US automakers reported a serious decline in sales. Experts expect a decline of about 12%. Earlier, the ISM index for the manufacturing sector was published, which fell to its lowest level since June 2009. All these data increase the risks of a serious reduction in demand for new labor. According to forecasts, 145 thousand jobs were created in September, against 130 thousand in August. But statistics published in recent days have raised market concerns that actual performance could be well below market expectations. According to CME Group, the probability of interest rate cuts at the October meeting of the Fed is estimated at 76%, against 58% a day earlier.
News worth paying attention to today:
8:30 GMT. UK: Construction Sector Performance Index (PMI) for September
13:15 GMT. US: Non-farm employment change from ADP in September
14:30 GMT. US: US Department of Energy Report