Hungary's base interest rate will stay unchanged at 0.9% until at least 2020

European equities are slightly lower and US ones open slightly higher, as EUR/USD moves higher.

A spike in energy prices in the aftermath of Hurricane Harvey boosted the US cost of living by the most since January (0.5% M/M & 2.2% Y/Y vs 0.6% M/M 2.3% Y/Y consensus), while inflation excluding food and fuel stabilized at 1.7% Y/Y (vs 1.8% Y/Y forecast).

US retail sales jumped last month by the most in more than two years (1.6% M/M) as motor vehicles lost to hurricanes were quickly replaced and higher prices lifted receipts at gasoline stations. Core retail sales rose by 0.5% M/M. Both were close to expectations, but August figures were upwardly revised.

EU Commission chairman Juncker has warned Brexit will take longer than the UK government thinks, calling on Westminster to pay if it wants to accelerate talks to its future relationship. He said there was no agreement over the UK's exit bill which would stop negotiations from moving on to trade talks before next week's EU Summit.

The Bank of England should hold off raising interest rates as Britain's economy shows little sign of encouraging growth, the British Chambers of Commerce argued.

Bank of America has reported a 13% rise in quarterly profits, as growth in consumer banking and wealth management offset a sharp decline in bond trading revenues. Wells Fargo is still counting the cost of the sham account scandal more than a year since it erupted as it reported a decline in revenues and profits.

Hungary's base interest rate will stay unchanged at 0.9% until at least 2020, central bank deputy governor Nagy said, adding that downward risks to inflation had increased. The National Bank of Hungary, the most dovish in central Europe, cut its overnight deposit rate in September and announced more steps to ease monetary conditions.