- European stock market opens higher, after great US session and Asian gains
- Currency market attention focused on ECB decision (1:15 PM BST); market expects 25 bps cut
- Also, at 1:30 PM BST we will learn a set of data from the US (jobless claims, PPI inflation)
After yesterday's CPI data, the market is reassuring itself that disinflationary pressures are more of a foregone conclusion in the US economy and will likely open the door for the Federal Reserve to a series of rate cuts. This, combined with still far from 'dramatic' data from the US, could create a favorable mix for Wall Street - as long as macro readings remain solid, or only mildly weaker. With that in mind, investors will be closely watch today jobless claim report numbers.
The market will pay all the more attention to benefit claims today, and look for confirmation of a disinflationary trend in the PPI data. An increase in jobless claims could trigger a pullback on the indexes, while a strong drop in producer price inflation could suggest that demand for goods is seriously slowing. Previously today released data from Europe today pointed to a stronger-than-previous drop in wholesale prices in Germany and a much lower-than-forecast CPI inflation in Sweden, which fell below 2% in August.
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1:15 PM BST, Eurozone - ECB decision. Deposit rate: Expected: 3.5% Previously: 3.75%
- Refinancing rate. Expected: 3.65% Previously: 4.25%
1:30 PM BST, US - change in jobless claims: Expected: 230k Previously: 227k
1:30 PM BST, USA - PPI inflation for August YoY. Expected: 1.8% Previously: 2.2% (no m/m increase expected, no change)
- PPI core y/y. Expected: 2.4% Previous: 2.5% (expected 0.2% m/m increase vs. 0% previously)
16:30 - US, natural gas inventories change according to EIA. Expected: 48 billion cubic feet (bcf) Previously: 13 bcf
Central bankers' speeches
- 1:45 PM BST- Christine Lagarde of the ECB
- 3:25 PM BST - Thomas Jordan of the SNB
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