George Bell, Portfolio Manager, looks at what was a more encouraging day for equity markets outside of the US yesterday. Comments from the Bank of Japan’s Deputy Governor Uchinda noted that they will not raise rates further during current market instability which was welcomed as positive news for markets. In the US, attempts from the Treasury to raise capital through the issuance of bonds was met with weaker demand than expected and the wave of economic data last week points to a slowing of the US economy albeit from a very healthy level. The implied volatility indicated by the VIX index or the Wall Street Fear index has dropped dramatically, which could be an indication of more market stability. Comments later today from the President of the Richmond Fed will be listened to closely as to what to expect in September, the market is currently placing a 71.5% probability of a rate cut but with an expectation of a 0.5% cut rather than 0.25%.