Market Movers
US ISM non-manufacturing is expected to decline slightly from a still very high level. Consensus looks for a drop from 59.0 to 58.0, whereas we look for a bigger decline to 57.0.
UK releases PMI for the service sector. It has been declining the past two months but is still at a fairly robust level.
In the euro area it is time for retail sales for August. We look for a solid increase of 0.4% m/m for the second month in a row supported by a drop in gasoline prices lately (consensus -0.1% m/m). The euro Sentix index for October is also released. It dropped from a fairly high level in September and is likely to fall further following the EM turmoil as also indicated by the big drop in the German ZEW index. In addition, the euro area releases final service PMI, which will provide details for Spain and Italy as well.
The rest of the week the main events to watch will be FOMC minutes from the September meeting, Fed speeches (Williams, Bullard, Lockhart and Evans), German industrial production and Chinese FX reserve data.
The Scandi market will focus on the release of August's industrial production and September's service PMI, see Scandi Markets.
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