Market movers ahead
- The focus in the euro area next week will stay on Italy and the ongoing budget fight. Italian government bonds have come under renewed pressure, as the risk of a new debt crisis in the medium term looms.
- The next focal date for markets will be 15 October, which is the deadline for the Italian budget draft to be presented to Brussels.
- We expect to see US September CPI figures climb higher to 2.3% y/y. In addition there will be a number of interesting speeches from Fed members.
- In China, trade data will shed more light on the effects of the trade war
- In Sweden, we expect inflation figures to come out significantly lower than the Riksbank forecast. In Denmark, September inflation is expected to decline.
Global macro and market themes
- Global growth is slowing, but inflation pressure is rising.
- US bond yields hit a new high.
- Italy reignites debt crisis fears.
- Trump closes trade deal with Canada and Mexico, but is likely to escalate versus China.
