Market Commentary: Tuesday 9th September

Yesterday, French Prime Minister François Bayrou lost a confidence motion in parliament. He is expected to resign today, marking the third change in government in just over a year. President Macron is expected to name a new premier in the coming days. The new government will still face the challenge of passing a budget, though there has been little reaction in the French bond futures market.

In the corporate space, Anglo American has agreed to merge with Canada’s Teck Resources, making this one of the largest mining deals in over a decade. The deal is expected to be completed in 12–18 months if approved by regulators.

Spot gold has been trading at all-time highs, supported by a weaker U.S. dollar, currently at $3,638.31.

On the calendar today, data releases are light, but we have a series of central bank speakers: ECB’s Nagel (2:30 p.m.), SNB’s Schlegel (2:50 p.m.), and BoE’s Breeden and ECB’s Villeroy (both at 6:15 p.m.).

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