Summary:
- UK Industrial Production data expected to show modest advance
- American PPI Inflation on the agenda in the early afternoon
- Weekly API data in the spotlight as Brent struggles to break above $85
Few interesting readings were scheduled for Wednesday, however neither of them can be considered a top tier. Investors will be offered data concerning the UK industrial and manufacturing production as well as trade balance in the morning. Attention will be drawn to the PPI inflation data from United States in the afternoon as it comes one day ahead of the CPI reading. Apart from that, oil traders will focus on weekly API data concerning crude oil inventories.
9:30 am BST - UK, Industrial Production for August: The UK industrial production data did not show a negative reading since late-2016. Nevertheless, prints released throughout the summer period came in lower than data from the first half of the year (even despite more favourable base effect) Today’s reading is expected to show a 1% YoY advance, against previous 0.9%. Moreover, investors will be served manufacturing production and trade balance data. The former is forecasted to remain unchanged at 1.1% YoY while the latter is expected to show budget deficit deepening to 10.9 billion GBP.
1:30 pm BST - US, PPI Inflation for September: Usually it is the CPI data that brings the most attention. This time it will be no different but today’s PPI inflation print may offer some hints ahead of tomorrow’s reading. The headline reading is expected to stay unchanged at 2.8% YoY. On the other hand, the core gauge is viewed to accelerate from 2.3% YoY to 2.5 YoY.
9:40 pm BST - Weekly API Crude Oil Inventories: The bull run on the oil market was put on halt recently as pressures on OPEC to raise production mounted. However, the Hurricane Michael that haunt the Gulf of Mexico poses a threat to the oil production facilities and in turn may curb output. In theory we should see oil price increase in such scenario. While the oil inventory data is nowhere as important as aforementioned issues it may be a trigger for short-term price swings. Market consensus suggests that today’s API reading will show a 1 mb decline.
Central bank speakers scheduled for today:
- 10:10 am BST - BoE’s Haldane
- 5:15 pm BST - Fed’s Evans
- 11:00 pm BST - Fed’s Bostic
OIL hit the $85 handle last week, but bulls failed to hold this gains. However, the storm threatening the US east coast may allow buyers to push higher once again. Source: xStation5
