The focus this week will be on central bank interest rate and policy decisions and key data releases.
This week, the FOMC, BoJ, and BoE will meet on monetary policy.
Data highlights for the week:
US – retail sales for Aug, prelim consumer sentiment for Sep and the stalling weekly jobless claims will be important metrics of the consumer recovery this week. Manufacturing data includes the first view of Sep activity via the Empire State and the Philadelphia Fed manufacturing surveys. Industrial production data will also be released for Aug – an important hard data point to track the recovery in manufacturing activity and capacity utilization.
The US Senate and House will be back from recess. The US Presidential election is less than two months away and further negotiations (posturing) on stimulus will remain in focus.
China – data on industrial production, fixed asset investment and retail sales for Aug will be released.
Australia – the labour market report for Aug will be released this week – providing an important gauge on the pace of recovery in employment.
The Brexit trade deal negotiations between the EU and the UK will continue this week. The focus will remain on the introduction of Brexit legislation by the UK which breaches the commitment made to ensuring no hard border between Ireland and Northern Ireland as a part of the Brexit agreement.
The forward schedule of US Fed purchases of Treasury Securities and MBS will be released on 14 Sep. Last week, planned purchases of Treasury Securities by the Fed were $11.95bn and purchases of MBS were $22.1bn.
US Treasury issuance will be heavier this week. The US Treasury will settle approx. $393bn in ST Bills, Notes, and Bonds this week, raising approx. $62.4bn in new money.
More detail (including a calendar of key data releases) is provided in the briefing document – download the weekly brief here;
Comments and feedback are welcome. Please email me at kim.mofardin@marscapitalpartners.net
