Today, focus will be on US industrial production figures for September. Manufacturing production declined in August, in line with a sharp decline in the ISM manufacturing index. As the ISM manufacturing index rebounded sharply in September, it will be interesting to see whether 'hard data' confirms that the manufacturing sector performed better in September. The first indicator on the manufacturing sector in October is also due today, with the release of Empire manufacturing index.
After markets close in Europe, FOMC board member Stanley Fischer, who is considered neutral, is scheduled to speak. Following Fed Chair Janet Yellen's dovish comments on Friday, it will be interesting to see if other FOMC members share the same view.
Later this week, attention will turn to the ECB meeting. We expect a balanced tone from President Draghi and no new easing measures. Focus will be on a potential QE extension in December together with questions about tapering, see more in ECB preview: too early to discuss tapering , 14 October. Investors will also follow the US CPI figures to see whether core inflation has started to pick up. The UK data will be in focus as attention is on a possible impact from the Brexit vote.
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