The week ahead sees investors remain focused on the Pound as political uncertainties remain; on global stock markets as an under pressure Trump suggests a deal for trade talks could come earlier than expected and following some economic concerns in the Eurozone, inflation and output data is due.
UK: Political uncertainties
We are now entering the month in which Britain is meant to leave the EU. The county’s political situation is on fire. An election might be in the offing. It could be hard for the pound to look beyond all that in the coming weeks.
Still, if it can, then it has plenty of data to get its chops around as September transitions into the spookiest of months. Monday sees the current account figures joined by the final Q2 GDP reading, which, as of the last look, sits at an absolutely miserable -0.2%. Sterling will be praying for some kind of (positive) revision.
UK: Stocks to watch
As for the corporate calendar, the highlights include Greggs and Ferguson on Tuesday, Tesco on Wednesday and Ted Baker on Thursday.
US: An early deal for trade talks?
While Britain deals with its latest iteration of Brexit month, the US is facing its own repeat situation this October: another round of trade talks. The headline-grabbing stuff won’t happen until a bit further into the month; however, Trump has already got investors optimistic by claiming a deal could arrive sooner than people think. That those comments came hours after it was revealed the President is facing impeachment is, of course, just a coincidence.
The tone of the week’s trading could be set early on, as China reveals its manufacturing and services PMIs early on Monday morning. The US then posts its own PMIs on Tuesday (manufacturing) and Thursday (services), before posting the nonfarm jobs report for September on Friday.
Eurozone: Inflation figures and output
After the flash readings caused such concern last week, the Eurozone’s final manufacturing and services PMIs arrive on Tuesday and Thursday respectively. The former also sees the latest inflation figures from the region, while the latter brings its retail sales data.
It is also worth noting that there is a German bank holiday on Thursday.
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