Market Movers ahead
The meeting between Donald Trump and Xi Jinping this weekend could be a turning point in the trade war and there is a good chance of a deal despite more sabre rattling this week.
Markets have reacted strongly to Fed Chair Jerome Powell’s words this week and next week he is due to testify in Congress. The jobs report is likely to confirm that wage growth is strong in the US.
We also expect data to show increasing wage growth in the euro area in Q3.
There is a high risk that the Chinese Caixin PMI will drop below 50.
In Norway, the important regional network survey should still point to growth above trend, while there is a considerable risk of weaker growth indicators from Sweden.
Weekly wrap-up
There is considerable doubt about whether the Brexit deal will pass in the British parliament and what will happen if it does not.
Weak macro data in Europe helped push oil below USD60.
The Italian government showed signs of yielding to pressure from the markets and the EU to tighten fiscal policy plans.
Swedish GDP declined 0.2% in Q3 due to temporary factors but also with underlying weakness. Indicators for Q4 do not look too promising either.
