Market Movers
Focus remains in particular on the economic situation in China. Financial markets are keeping a close watch on news out of China as well as hints from major central banks about the short-term direction of monetary policy.
In terms of data releases euro area inflation will attract attention today. We expect a small decline in the headline figure to 0.1% y/y in August from 0.2% y/y in July driven by the drop in the oil price but also due to an expected decline in core inflation. Looking ahead focus will be on core inflation and any second-round effects of the lower oil price as this would likely imply the ECB will ease again.
Later this week there are a number of interesting data releases including the US labour market report and manufacturing ISM. In the euro area the main event is the ECB meeting where there is increasing pressure on president Draghi for more easing. In China, the release of the official NBS manufacturing PMI could be a hurdle for China's stock market.
In Denmark, focus will be on Q2 GDP growth, in Norway on Julys credit indicator and in Sweden on wage growth.
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