Market movers today
Financial markets in general, and the oil market in particular, will be monitoring the ramifications of Tropical Storm Harvey on South Texas where much of US energy production takes place. So far, it has led to the temporary shutdown of some oil and gas production as well as refinery production.
The most interesting data release today is the euro area loan growth in July. In 2017, loans to households have been rising at the fastest pace since 2009, confirming that the ECB's accommodative monetary policy measures are filtering through to the real economy. We expect the July figure to report 2.7% y/y growth, up from 2.6% y/y in June. We also get data on M3 money supply growth and we expect the figure in July to have remained around 5.0%, as observed over the past three months.
In the UK, the third round of Brexit negotiations between the UK and the EU kicks off this week. The parties are set to continue negotiations in phase 1 (divorce bill, citizens' rights and Irish border).
In Scandi markets, Swedish retail sales and trade balance data will be in focus today, see next page.
Later this week, the key data includes euro area inflation and unemployment. In the US, there are also some important releases including PCE inflation, the labour market report as well as ISM and PMI for the manufacturing sector. Chinese private and official manufacturing PMI will also be published.
To read the entire report Please click on the pdf File Below: