Sweden: Recession fears abating on softer Fed talk

Danske Research Team Danske Bank A/S

Market movers ahead

The US government shutdown continues. Look out for more negotiations.
US regional surveys from Philadelphia and New York (Empire) should give more clues to how much manufacturing is slowing down.
In the UK, the House of Commons will vote on Theresa May's Brexit deal on Tuesday. We expect the House to vote it down.
We expect Chinese money and credit data to show how much the monetary easing is feeding through to the economy.
In Scandinavia, focus turns to Swedish inflation numbers and house price statistics.

Weekly wrap-up

US recession fears abated somewhat, as the Fed struck a more dovish tone and job growth is solid.
Risk sentiment improved with equities gaining and bond yields and oil prices moving higher.
US and China concluded another round of talks in Beijing this week. Negotiations continue according to plan and the top negotiators on both sides plan to meet later this month.
Theresa May suffered another heavy defeat on Brexit. Uncertainty prevails.
A softer tone from the Fed weakened the USD.

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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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