All eyes on Jackson Hole

Danske Research Team Danske Bank A/S

Market movers ahead

Next week in the US, we expect focus to be mainly on the annual Jackson Hole Economic Policy Symposium, where Fed Chair Janet Yellen is due to speak.
In US, we expect an upward correction in the PMI service index for August.
We expect the consumer confidence figures for August in the euro area to be affected negatively by the rising oil price at the beginning of August and post-Brexit vote uncertainty, although this is diminishing. However, continued solid labour market conditions and resilient business sentiment are likely to pull consumer confidence upwards slightly.
In Sweden, we expect the strong trend in employment to continue for a few months more, despite the deceleration in growth.
In Norway, we expect focus to be on the oil investment survey, which we believe could paint a slightly less negative picture for the oil sector.

Global macro and market themes

Risk sentiment has been supported by positive macro momentum, lower tail risks and monetary easing.
We see more upside potential for now but, in our view, too high earnings expectations and a potential loss of macro momentum loom.
Bonds are still supported by QE.
We expect EUR/USD to be range bound in coming months before moving higher.

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Author

Danske Research Team

Danske Bank A/S

Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.

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