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In Italy, the delayed reaction to the victory of anti-establishment parties which seem geared to roll over fiscally irresponsible proposals at a time when the ECB is the only buyer of Italian bonds, remained a key preoccupation. While the S&P futures market was indicated lower prior to the opening yesterday, the S&P did not participate to the stampede for the exit, bringing an element of stability to an otherwise stormy European morning session. US stocks received further support from Minutes of the Fed meeting which were dovish enough, allowing the S&P to recoup the balance of earlier losses for the day, closing with modest gains. The Fed noted that, "…a temporary period of inflation modestly above 2 percent would be consistent with the Committee's symmetric inflation objective and could be helpful in anchoring longer-run inflation expectations." The Citigroup economic surprise index rolling over to 7-month lows did not quite match the part of the statement that also said that “economic fundamentals were currently supporting continued above-trend economic growth”. In any case, the statement helped US stocks to recover as did US President Trump saying that the House Ways and Means Committee is working on additional tax cuts by November (...) and that he will propose new tax cuts before that month. A shadow to this picture of resilience was GE plunging in very active trade, suffering its biggest selloff nine years. Financial stocks ended the day with the steepest loss of the S&P 500 sector. A planned rollback of Dodd-Frank regulations failed to offset other risks. Deutsche Bank was said to be considering 10,000 job cuts. Credit markets keep not playing ball with equity markets with HY bonds closing mostly lower. 

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