Market movers ahead
- In the US , the most important release is the jobs report for October on Friday, where we look for further signs that wage growth is accelerating.
- The focus remains on the ongoing Italian budget fight, while markets will also keep an eye on the euro area October HICP figures after recent months’ core inflation misses.
- In the UK the most important event is the budget release, while we do not expect any policy changes from the Bank of England on Thursday.
- In China the focus turns to October manufacturing PMI, while we expect the Bank of Japan to keep its ‘QQE with yield curve control’ policy unchanged on Wednesday.
- In Scandinavia , markets will be paying attention to Danish FX reserve figures for October, as DKK has hovered on the weak side.
Global macro and market themes
- PMIs in Europe and the US disappointed, adding to recent trend of weaker growth momentum, but central banks in Europe still seem keen to move on with policy tightening.
- The gloves are off in Italy’s budget fight, which could eventually result in the Commission launching an excessive deficit procedure against Italy.
- Global risks sentiment remains under pressure, but we still think it is too early to adjust the portfolio for a downturn.
