Market movers today
There are no big global market movers on the agenda today. Of tier 2 data, we have German trade balance, UK industrial production and US NFIB small business optimism.
In the afternoon, the Fed’s Neel Kashkari (voter, dovish) is due to speak.
Catalonian President Carles Puigdemont is due to address law makers in local parliament in Barcelona at 18:00 CEST on the outcome of the 1 October referendum to consider a declaration of independence. The referendum has been ruledillegal by the Spanish courts, and Prime Minister Mariano Rajoy has dismissed the ballot as meaningless and vowed to defend the unity of Spain using all means at his disposal.
In Scandinavia, focus will be on Norwegian CPI and in Sweden, the NIER’s updat ed macro forecasts will be scrut inised for comments on fiscal policy and whether it is considered to have any impact on the Riksbank. See next page for details.
Selected market news
It has been a relatively quiet session overnight both in terms of news and price actions. In the US, equity indices ended the day slightly lower with S&P500 and Dow Jones declining 0.1% and 0.2%, respect ively. In Asia this morning, trading is relatively mixed, with Chinese indices trading lower while Japanese equity indices are up 0.2-0.4%.
The fifth round of Brexit negotiat ions kicked off in Brussels yesterday and stakes were upped after UK Prime Minister Theresa May told the House of Commons yesterday how the government thinks the UK could operate as an independent trading nat ion after Brexit and out lined a contingency plan for a no-deal scenario, saying that the country must be prepared for ‘every event uality’. Theresa May rejected existing models for economic co-operation such as the Norwegian model (membership of the European Economic Area) or the Canadian model, calling for an unique solution for the UK. At the same time, she stressed that the government is still prepared to walk away from Brexit negotiations without a deal. In terms of a possible transition period, she confirmed that Britain will remain subject to the rulings of the European Court of Justice during a planned two-year transition period after Britain leaves the EU in March 2019 and did not rule out accepting new regulations imposed by Brussels. This round of Brexit negotiations concludes on Thursday and it is the final set of talks before EU leaders meet to discuss Brexit at a summit next week.
