Market themes of the Day: Brexit summit 1.0, the UK inflation and FOMC minutes headline
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Main themes:
- German EU minister Michael Roth said the EU is hoping to eventually reach the Brexit deal but need to protect its own interests.
- UK wages rocked rising well above expectations with regular pay in the UK up 3.1% y/y and total pay up 2.7% y/y. For details read my Analysis here.
- President Donald Trump called the Federal Reserve his “biggest threat,” again criticizing the central bank for endangering economic growth through interest-rate hikes. “The Fed is raising rates too fast,” Trump said Tuesday.
- The European Council meeting with Brexit headlining the opening dinner on Wednesday is unlikely to come to conclusion but may bring negotiating parties closer as the deadline approaches. For details read my Preview here.
- The FOMC meeting minutes might show discussion of Fed policymakers about the monetary policy path.
Europe
- German investors confidence indicator from ZEW Institutedecelerated sharply to -24.7 in October from -10.6 in the previous month. For detail read my Analysis here.
- The Eurozone inflation is expected to rise 2.1% y/y in September with core inflation up 1.0% y/y.
- Deutsche Bundesbank President Jens Weidmann is due to participate in a panel discussion on cybersecurity strategies of state and business, in Berlin at 16:30 GMT.
UK
- The UK inflation is expected to accelerate to 2.8% y/y in September with core inflation stripping the consumer basket off food and energy prices expected to decelerate to 1.8% y/y. For details read my Preview here.
- The Brexit summit is scheduled for Wednesday evening with Brexit deal unlikely, but plenty of juicy headlines are set to flood the media. For details read my Preview here.
- The Bank of England Deputy Governor Ben Broadbent is due to participate in a panel discussion titled "Unconventional Monetary Policies in the Euro Area, Japan, and the U.K." at the Brookings Institution, in Washington DC at 17:00 GMT.
US
- The US industrial production increased 0.3% over the month in August.
- Federal Reserve Governor Lael Brainard is scheduled to speak at the Fintech conference organized by Boston Fed at 16:10 GMT.
- The FOMC meeting minutes are due disclosing details of future path for interest rates at Fed after rate hike in September.
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