Market movers today
In the US, the labour market report for October is due out. We estimate employment growth in October was 300,000, as other indicators have shown the labour market has recovered following the hurricanes. Note the very strong wage growth of 0.5% m/m in September was due partly to compositional effects, as the 'leisure and hospitality' sector (typically low wage growth jobs) was the sector most severely hit by the hurricanes. This could potentially have added up to 0.1pp to wage growth and we expect this effect was reversed in October. Hence, we expect a correction, now people have returned to their jobs, so we think wages rose 0.1% m/m in October.
In the UK, PMI services for October will give us more information about economic growth at the beginning of Q4. We estimate the index was more or less unchanged at 53.6 but see risks skewed on the downside as the index is a bit higher than suggested by the most recent business confidence indicators.
In Norway, house price data are due out today (see overleaf).
To read the entire report Please click on the pdf File Below: