Market movers today
Focus today will be on the equity market rout starting yesterday and continuing overnight in Asia. Developments in Italian bond markets also continue to be an important market driver.
On the data front, it's time for key Swedish inflation figures, where we look for a print below both the Riksbank and consensus forecast, see page 2.
Accounts from the ECB meeting on 13 September are due. Since then, communication has become less dovish and we will look at the assessment of not least wage growth.
US CPI inflation is due, which is getting more focus due to the tight labour market and still strong growth. We expect core inflation to stay unchanged at 2.3% y/y. It is clearly above the Fed's target but note that this is based on the PCE inflation number, which is a bit lower than CPI at present. However, inflation pressure generally seems to be rising in the US, as there are bottlenecks in the labour market and companies report very strong demand growth. US initial jobless claims are also being released and are expected to continue to hover around record lows.
To read the entire report Please click on the pdf File Below: