Market movers today
Norway is due to release inflation for August today where we look for a jump higher in core inflation to 1.5% y/y. Monday also sees parliamentary elections in Norway and it looks to be a very close race. Not only is it unclear which bloc will have a majority, but there is considerable uncertainty about what the governing coalition will look like. For the rest of the week in Scandi focus will be on Swedish CPI, Prospera inflation survey and the regional network survey in Norway.
There are no global market movers today but focus continues to be on Hurricane Irma and a new vote on UN sanctions against North Korea taking place today.
Our weekly Strategy on Friday looked closer at the global cycle and the outlook for the Fed next year, see Strategy: Strong cycle while US debt limit is postponed, 8 September 2017.
Selected market news
Stock markets and bond yields moved higher in Asia overnight as the damage from Hurricane Irma is set to be smaller than estimated. The hurricane hit Florida on Sunday and has weakened in strength as it moves up the West coast of Florida.
Markets were also relieved that we did not see another North Korean missile test over the weekend. It was widely anticipated that North Korea would launch another missile on the Founding Day on Saturday. However, North Korea has warned the US on new tough UN sanctions that are set to be voted on today. The state-run news agency cited a statement from the Ministry of Foreign Affairs saying that North Korea is ‘closely following the moves of the US with vigilance’ and that the US would make sure the US ‘pays a due price’ if it pushes through harsher sanctions. North Korea often comes pit with warnings though, but the regime might respond with a new missile test on the back of new sanctions.
In the UK, Brexit Secretary David Davis warned UK lawmakers of a chaotic departure from the EU if they fail to pass a key bill on domestic legislation.
In Japan, machine orders rose stronger than expected in July by 8.0% m/m (consensus 4.1% m/m) after -1.9% m/m in June. The numbers are very volatile but give a hint of robust investments going into Q3.
