Highlights
In the UK public sector net borrowing requirement (PSNB) data for August, overall borrowing is forecast at £9.6 billion, up from £3.48 billion in July.
The French INSEE business sentiment indicator is seen creeping just marginally firmer to 97 in September from 96 in August.
At 3:30 a.m. EDT (0730 GMT), the Swiss National Bank (SNB) is scheduled to announce its monetary stance in its quarterly Monetary Policy Assessment. The SNB is expected to conduct a second straight 25-point rate hike, lifting its policy interest rate to 2.0 percent, after slowing the pace of tightening to 25 basis points in June from 50 points in March.
Later at 7 a.m. EDT (1100 GMT), the Bank of England is expected to announce that it is raising Bank Rate by 25 basis points to 5.5 percent, which would be the highest since December 2007, after hiking it by 50 basis points in June then by 25 points in August. Consumer inflation remains elevated at 6.8 percent, well above the bank's target of 2 percent. The bank has already lifted its policy rate by 515 basis points in 14 rate hikes that began in December 2021.
The European Commission's consumer confidence index for September is expected to hold steady at minus 15.9 after August's nearly full point drop to minus 16.0, which was the first decline since March.
Among US data, new jobless claims for the September 16 week are expected to come in at 225,000 versus 220,000 and 217,000 in the two prior weeks which marked a turn lower for this reading.
The Philadelphia Fed manufacturing index is expected to slip to plus 0.5 in September after surging more than 25 points to plus 12 in August, when it ended a full year of contraction.
The second-quarter current account deficit is expected to widen to $220.6 billion from $219.3 billion in the first quarter.
After July's subdued 4.07 million annual rate, existing home sales in August are expected to firm slightly to a 4.10 million rate. The National Association of Realtors has been citing lack of available inventory and rising mortgage rates for the slow pace of sales.
Down by 0.4 percent in July, the index of leading economic indicators in August is expected to post a 17th straight decline, down a consensus 0.3 percent. This index has been in very deep decline and has long been signaling a pending recession.
Consumer inflation in Japan is forecast to have moderated slightly to 3.0 percent in August from 3.1 percent in July in the core measure (excluding fresh food prices) on recent markdowns in utilities but service prices remained on an uptrend as many firms are raising wages to secure workers. The year-over-year increase in the total CPI is also expected to have eased to 3.1 percent in August from 3.3 percent in July. Underlying inflation measured by the core-core CPI (excluding fresh food and energy) is forecast to stay at a 42-year high of 4.3 percent.
The Bank of Japan's policy board is expected to vote unanimously to maintain its overall monetary easing stance, keeping its zero to slightly negative interest rate targets along the yield curve and relatively large asset purchases to continue seeking stable 2 percent inflation and support sustainable wage growth. The board is likely to repeat its recent statement that the bank will patiently continue with monetary easing while nimbly responding to developments in economic activity and prices as well as financial conditions."
The board has also been debating the costs and benefits of the yield curve control policy framework that was adopted in September 2016 and the negative overnight interest rate target introduced in January 2016. In July, the board decided in an eight to one vote to make the bank's existing reference range for the 10-year bond yield more flexible, basically keeping the range of minus 0.5 percent to plus 0.5 percent, but expanded its ultimate defense lines to minus 1.0 percent and plus 1.0 percent in market operations.
In its quarterly policy decision, Taiwan's central bank is expected to leave the key interest rate unchanged at 1.875 percent amid stable inflation. In its last rate announcement in June, the bank maintained its policy rate for the first time in more than a year after raising it for the fifth straight time in March.
The French INSEE business sentiment indicator is seen creeping just marginally firmer to 97 in September from 96 in August.
At 3:30 a.m. EDT (0730 GMT), the Swiss National Bank (SNB) is scheduled to announce its monetary stance in its quarterly Monetary Policy Assessment. The SNB is expected to conduct a second straight 25-point rate hike, lifting its policy interest rate to 2.0 percent, after slowing the pace of tightening to 25 basis points in June from 50 points in March.
Later at 7 a.m. EDT (1100 GMT), the Bank of England is expected to announce that it is raising Bank Rate by 25 basis points to 5.5 percent, which would be the highest since December 2007, after hiking it by 50 basis points in June then by 25 points in August. Consumer inflation remains elevated at 6.8 percent, well above the bank's target of 2 percent. The bank has already lifted its policy rate by 515 basis points in 14 rate hikes that began in December 2021.
The European Commission's consumer confidence index for September is expected to hold steady at minus 15.9 after August's nearly full point drop to minus 16.0, which was the first decline since March.
Among US data, new jobless claims for the September 16 week are expected to come in at 225,000 versus 220,000 and 217,000 in the two prior weeks which marked a turn lower for this reading.
The Philadelphia Fed manufacturing index is expected to slip to plus 0.5 in September after surging more than 25 points to plus 12 in August, when it ended a full year of contraction.
The second-quarter current account deficit is expected to widen to $220.6 billion from $219.3 billion in the first quarter.
After July's subdued 4.07 million annual rate, existing home sales in August are expected to firm slightly to a 4.10 million rate. The National Association of Realtors has been citing lack of available inventory and rising mortgage rates for the slow pace of sales.
Down by 0.4 percent in July, the index of leading economic indicators in August is expected to post a 17th straight decline, down a consensus 0.3 percent. This index has been in very deep decline and has long been signaling a pending recession.
Consumer inflation in Japan is forecast to have moderated slightly to 3.0 percent in August from 3.1 percent in July in the core measure (excluding fresh food prices) on recent markdowns in utilities but service prices remained on an uptrend as many firms are raising wages to secure workers. The year-over-year increase in the total CPI is also expected to have eased to 3.1 percent in August from 3.3 percent in July. Underlying inflation measured by the core-core CPI (excluding fresh food and energy) is forecast to stay at a 42-year high of 4.3 percent.
The Bank of Japan's policy board is expected to vote unanimously to maintain its overall monetary easing stance, keeping its zero to slightly negative interest rate targets along the yield curve and relatively large asset purchases to continue seeking stable 2 percent inflation and support sustainable wage growth. The board is likely to repeat its recent statement that the bank will patiently continue with monetary easing while nimbly responding to developments in economic activity and prices as well as financial conditions."
The board has also been debating the costs and benefits of the yield curve control policy framework that was adopted in September 2016 and the negative overnight interest rate target introduced in January 2016. In July, the board decided in an eight to one vote to make the bank's existing reference range for the 10-year bond yield more flexible, basically keeping the range of minus 0.5 percent to plus 0.5 percent, but expanded its ultimate defense lines to minus 1.0 percent and plus 1.0 percent in market operations.
In its quarterly policy decision, Taiwan's central bank is expected to leave the key interest rate unchanged at 1.875 percent amid stable inflation. In its last rate announcement in June, the bank maintained its policy rate for the first time in more than a year after raising it for the fifth straight time in March.
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.
