Thursday's Market Movers
In the euro area the main event today will be the release of money supply M3 and credit data for August. As usual, focus will mainly be on the credit data. According to the ECB's most recent bank lending survey, banks have continued to ease credit standards and demand for new loans also appears to be improving. Hence, we expect the contraction in new loans to have eased further in August.
In the US, it is unavoidable that the headline durable goods orders contracted markedly in August in the wake of the 22.6% m/m surge in July that largely reflected a huge new order for new Boeing Company (NYSE:BA) aeroplanes. However, the underlying trend in core durable orders has also been strong, suggesting acceleration in business capex in Q3.
ECB president Mario Draghi is scheduled to deliver a speech at 09:00 CET in Vilnius, Lithuania. In a interview with a Lithuanian newspaper published this morning, Draghi says that the ECB is ready to use additional non-conventional tools if its inflation target is under threat. Bank of England governor Mark Carney is also scheduled to speak today.
In Scandinavia, household lending will be released in Sweden while in Denmark the Systemic Risk Council will be meeting.
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