Market Movers Today
In the euro area, the most important data release today is money supply and private sector bank lending. In June, lending to households and non-financial corporations continued their upward trend, meaning the ECB's accommodative monetary policy is feeding through to the private sector. This should eventually generate higher inflation but the ECB is being challenged currently by a stronger euro, which is a strong headwind to inflation.
US core capital goods orders are due for release and consensus is for another modest increase. Over the past months, the figure has disappointed, implying that fixed investments growth did not look like a strong contributor to GDP growth in Q2. As private consumption is also growing at a slower pace than anticipated, this paints a more modest picture for GDP growth than we had expected.
In scandi markets, we will get the release of the Norwegian LFS and Swedish unemployment rates together with the Swedish Economic Tendency Survey and household lending. Otherwise, focus will remain on Swedish politics (see below).
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