Market themes of the Day: The geopolitical risk is back on with US retail sales headlining
|What you need to know before markets open
Main themes:
- Various geopolitical risks escalated over the weekend including US tension with Saudi Arabia, Bavarian elections and Brexit talks put on hold.
- Sterling opened with the gap on the downside trading at around the key technical level of 1.3100 against the US Dollar.
- US retail sales report is expected to increase 0.5% m/m in September. For details read Valeria’s Preview here.
Europe
- German local elections in Bavaria saw Angela Merkel’s coalition partner CSU losing its majority in an election that is likely to rattle German Chancellor Angela Merkel's fragile "grand coalition" government.
UK
- A weekend of intense Brexit negotiations failed to break the deadlock and there will be no further attempt to resolve the impasse before EU leaders gather in Brussels on Wednesday for the summit.
US
- The US consumer sentiment dropped to 99.0, falling short of market expectations in September.
- US retail sales report is expected to increase 0.5% m/m in September. The control group of the US retail sales included in the GDP report is expected to increase 0.4% m/m. For details read Valeria’s Preview here.
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