Global Update
- US consumers are showing signs of life. The retail sales report for August showed much more underlying strength than expected.
- Manufacturing and housing indicators continue to lead the way. UK house prices are increasing, US home building is turning and global industrial production continues to improve.
- Some of the key ECB members have revealed concerns about a ‘too late’ withdrawal of policy measures, while the central Fed members continue to be very dovish.
- We have revised our global growth forecasts slightly up and expect fast growth in the coming quarters.
Market movers ahead
- The FOMC meeting is the main event next week. We believe that there will be only small changes in the statement. Rates hikes are still far off.
- Euroland flash PMI and German IFO are set to rise further.
- In Sweden confidence data and PPI will be in the spotlight. Confidence is likely to improve further in line with the global trend.
- Norges Bank is set to confirm that hikes are drawing closer. An October hike cannot be ruled out.
