Market movers ahead
- After two weeks of central bank action, focus will likely turn to the real economy, where we will start to get PMI data for September.
- If there is no increase in PMIs in the US, this will indicate that Q3 showed the weakest growth since 2009.
- In Europe, it will be interesting to see if the service sector can continue to support growth despite the weakness in manufacturing.
- A trade deal between the US and Japan could be signed and there could be news about the US-China trade war, with high-level talks expected in early October.
- Swedish NIER survey data will be scrutinised for clues whether the recent bad labour market data paint a true picture of the economy.
Weekly wrap-up
- Norges Bank hiked interest rates and maintained a hiking bias, although it lowered its expectations for the future level of interest rates.
- The Fed cut rates and maintained its easing bias, as widely expected.
- Drone attacks in Saudi Arabia caused a spike in the oil price and a drop in risk sentiment, but both proved temporary.
- Long yields have increased recently, but we expect them to head lower again.
