Morning Juice – Europe Session Prep

Good morning, Traders.
It is Monday, the 28th of October, here is what to expect for the day.

Sentiment

For the first time since 2009, the ruling coalition in Japan was unable to secure a majority in parliament, resulting in a contest between the two main blocs to form a government and a period of political instability.

As it looks to add more tools for adjusting the economy, China’s central bank is broadening its monetary policy toolset to better manage liquidity in the financial sector. According to a statement released on Monday, the People’s Bank of China will enter into monthly “outright reverse repurchase agreements” with principal dealers for a maximum of one year. According to the PBOC, the action aims to enhance the banking system’s monetary policy toolset and maintain a manageable level of liquidity.

After Israeli raids on targets in Iran evaded the OPEC member’s crude facilities, oil fell more than 5% at the beginning of the week, increasing the likelihood that regional hostilities may subside. As a weapon for monetary policy, China’s central bank is implementing so-called outright reverse repurchase agreements.

Elon Musk outlined his plan for significant government spending cutbacks in the event that Donald Trump is elected president, claiming he can slash at least $2 trillion from the federal budget.

As Chancellor of the Exchequer Rachel Reeves gets ready to unveil a historic package of tax increases and additional borrowing in a make-or-break budget on Wednesday, UK Prime Minister Keir Starmer declared his administration would “embrace the harsh light of fiscal reality.”

Good luck!