Global Update
- US regional business surveys confirmed the improvement in US industry while housing data provided more signs of stabilisation – and maybe even recovery.
- Euroland continues to surprise to the upside. This week Flash PMI rose further and a pick-up in service PMI provides hope that the improvement is getting more broad-based. Germany is performing strongly
- Q2 GDP data in Japan and Norway showed that these countries have also left recession territory. Among G7 countries Japan is showing strongest growth, rising 3.7% q/q annualised – clearly above trend growth.
- Bond yields slid back further in the past week as downbeat consumer news is pushing yields lower. Better news on the consumer and the labour market is needed to get a renewed rise in yields.
Market movers ahead
- In the US focus turns to US consumer data on confidence and spending. House prices and durable goods orders will also be released.
- The German ifo index will be the main mover in Euroland and we expect to see another positive surprise.
- We look for a further rate cut in Denmark from Nationalbanken as the DKK continues to trade strong and the currency reserve is record high.
- A busy week is coming up for Sweden with numbers on consumer and manufacturing confidence, retail sales and unemployment. Labour market data is also due in Norway.
