Market movers ahead

  • In the euro area, we are due to get the last inflation input before the ECB meeting in September, setting the scene for the monetary stimulus package. We expect August inflation to be unchanged from July inflation.
  • We do not expect to see any improvement in numbers out of Germany, as the Ifo index is set to decline further on the back of ongoing geopolitical uncertainty.
  • In the US, we are set to get preliminary capex orders for July, which will be interesting in light of the ongoing manufacturing slowdown and trade war uncertainty.
  • Focus remains on Brexit and whether the anti-hard Brexiteers can find a common way forward to block Prime Minister Boris Johnson delivering a no-deal Brexit.
  • Danish data next week should shed light on what has been driving the strong Q2 GDP reading. In contrast, we expect Swedish data to show weakness.

Weekly wrap-up

  • We have published an update on our outlook for the global economy (see Global Economic Update: Stuck in the mud but no hard landing yet , 22 August) . With no solution to the trade war in sight, we have downgraded our growth outlook.
  • The FOMC minutes from the July meeting revealed a very divided Fed on the topic of further easing, inflation expectations continue to slide and US PMI manufacturing moved below 50.
  • In the euro area, the economic backdrop remains gloomy and the ECB confirmed that it plans to unveil a stimulus package in September but did not give any clues on the exact design and magnitude of policy measures included.

Full report in PDF.

- advertisement -
Previous articleSunset Market Commentary
Next articleWeek Ahead – Economic Data and G7 Summit Highlight a Calm Week
This publication has been prepared by Danske Markets for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Markets´ research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Markets is a division of Danske Bank A/S, which is regulated by FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange. Copyright (©) Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.