Global update
- Upside surprises in global economic data and Q3 earnings in the US have increased optimism of a sustained recovery
- In the US, retail sales provided good news on the underlying strength in consumption and initial jobless claims added some optimism on the labour market
- Despite a slightly disappointing ZEW in Germany, on balance economic data in Euroland have been positive
- Industrial activity in Euroland continues to recover and increased for the fourth month in a row in August
- In China exports and imports soared in September easing our fears of a substantial slowdown in H2 2009
- Minutes from the latest FOMC meeting showed that the majority of the committee members are still on the dovish side
Market movers ahead
- In Sweden the main event is the Riksbank rate decision. We do not expect the Riksbank to change its forecast, nor do anything new. Also keep an eye on earnings reports from Swedbank and SEB
- A stream of FOMC members are speaking during next week including Chairman Bernanke. Given the wide range of views expressed lately changes in the stance of the inner-circle of the FOMC will be watched closely
- Euroland flash PMI and German Ifo are expected to increase but at a slower pace than in recent months
- We expect US housing market data to show further improvement
- In Asia focus next week will be mainly on China, where most September data and Q3 GDP growth will be released
