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Market themes of the Day: The Bank of England parliamentary testimony and US activity gauge headline

What you need to know before markets open

Main themes:

  • Emerging market crisis spreads from Turkey to Argentina with Argentina unveiling emergency austerity measures, including grain export taxes.
  • The Bank of England Governor Mark Carney, Chief Economist Andy Haldane and MPC members Silvana Tenreyro and Michael Saunders will testify before parliament's Treasury Committee. Watch out for any comments on whether to expect further hikes in the short term while British media speculate on UK government seeking the way how to prolong the term for Mark Carney in the office.

Australia

  • The Australian Dollar fell to a 20-month low at 0.7165 after the retail sales report missed the expectations. 
  • The RBA left the Cash rate unchanged at 1.50% in line with the market expectations mentioning depreciation of the Australian Dollar, especially against US Dollar. 

Europe

  • German manufacturing PMI decreased to 55.9 in August amid a slowdown in new order growth.
  • The Eurozone PMI remained flat at 54.6 in August.

UK

  • The UK manufacturing PMI fell o 25-month low of 52.8 in August as job creation slows to near-stagnation. 
  • The UK construction PMI is expected to fall to 54.9 in August, down from 55.8 in July.
  • The UK parliament's Treasury Committee holds Inflation report hearing at 12:15 GMT. The Bank of England Governor Mark Carney and several Monetary Policy Committee members testify on inflation and the economic outlook before for several hours.

US & Canada

  • The US and Canada were off on Monday celebrating Labor Day holiday.
  • The manufacturing PMI from the US ISM is expected to slow down in August. For details read my Preview here.

Author

Mario Blascak, PhD

Mario Blascak, PhD

Independent Analyst

Dr. Mário Blaščák worked in professional finance and banking for 15 years before moving to journalism. While working for Austrian and German banks, he specialized in covering markets and macroeconomics.

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