Central banks have spoken, how is the economy doing?
|Market movers ahead
After two weeks of central bank action, focus will likely turn to the real economy, where we will start to get PMI data for September.
If there is no increase in PMIs in the US, this will indicate that Q3 showed the weakest growth since 2009.
In Europe, it will be interesting to see if the service sector can continue to support growth despite the weakness in manufacturing.
A trade deal between the US and Japan could be signed and there could be news about the US-China trade war, with high-level talks expected in early October.
Swedish NIER survey data will be scrutinised for clues whether the recent bad labour market data paint a true picture of the economy.
Weekly wrap-up
Norges Bank hiked interest rates and maintained a hiking bias, although it lowered its expectations for the future level of interest rates.
The Fed cut rates and maintained its easing bias, as widely expected.
Drone attacks in Saudi Arabia caused a spike in the oil price and a drop in risk sentiment, but both proved temporary.
Long yields have increased recently, but we expect them to head lower again.
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