Producer price index in Germany climbs 1.9% for September, beating consensus
German September producer prices rose 1.9% m/m, topping forecasts; the y/y gain was measured against a 6.2% expectation.
President Trump's approval rating dropped to a record 31% as Democrats lead by 12 points in generic ballot, signaling possible Republican losses in midterms.
With the November 3 midterm elections approaching, Republicans have little time left to reverse the trend.
Trump has become more of a burden for his party as his approval rating falls to a record low of 31%. The rating has been worsening, with a notable downturn after the March conflict in Iran.
The broader polling picture is even more concerning:
While the generic ballot does not directly convert to seats, the 12-point gap is troubling for Republicans. Should it persist until election day, it suggests a contentious final two years for Trump's presidency, marked by investigations into Epstein, the Iran war, and corruption.
Markets have probably already factored in Democratic control of the House, but a severe defeat could trigger a wider rejection of Trump, including from his own party. Such an outcome might boost efforts for peace in the Middle East and a resolution to the trade war. Meanwhile, being under constant investigation could make Trump more impulsive and combative.
How Trump reacts to falling poll numbers and manages his legacy is also uncertain. Will it prompt a more conciliatory stance focused on economic achievements, or a stronger push on his least popular policies? Does he want to be remembered as the president who initiated an endless war with Iran?
One should be cautious about viewing this as a direct signal for the dollar or equity markets. The more relevant point is that the possibility of a constrained White House is increasingly difficult to overlook as the election approaches.
The survey was conducted over four days, concluding today.
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German September producer prices rose 1.9% m/m, topping forecasts; the y/y gain was measured against a 6.2% expectation.
France's elevated borrowing costs keep the euro under threat even though its debt troubles have not yet become a full crisis.
UK unemployment rate fell to 4.7% in August, below the 5.0% forecast. Other labour market indicators showed mixed results.
China kept benchmark lending rates on hold for a 17th month and guided the yuan stronger; Asian equities mostly fell.