Highlights
Italy's unemployment rate is forecast to have edged up to 7.3 percent in the April-June quarter from 7.2 percent previously.
Before the North American markets open, India releases key data. Consumer inflation is seen stable at 3.51 percent in August, little changed from 3.54 percent in July. Industrial production is expected to rise 4.3 percent on year in July after rising 4.2 percent in June.
With inflation easing and economic activity flat, the European Central Bank is widely expected to cut its key deposit rate by a further 25 basis points to 3.50 percent. This rate continues to steer short-term money rates due to the ongoing abundance of liquidity.
However, note that as part of its March report on prospective changes to its operational framework, the bank indicated that by 18 September it would narrow the spread between the refi rate and the deposit rate (currently 50 basis points) to just 15 basis points. This would imply a larger, 60 basis point reduction, in the former to 3.65 percent.
Among US data, jobless claims for the September 7 week are expected to come in at 230,000 versus 227,000 in the prior week, which dropped the 4-week average by nearly 2,000 to 230,000.
Producer prices in August are expected to rise 0.2 percent on the month versus a marginal 0.1 percent rise in July. The annual rate is seen at 1.8 percent versus July's 2.2 percent which compared favorably with expectations for 2.6 percent. August's ex-food ex-energy rate is also seen up 0.2 percent on the month.
Before the North American markets open, India releases key data. Consumer inflation is seen stable at 3.51 percent in August, little changed from 3.54 percent in July. Industrial production is expected to rise 4.3 percent on year in July after rising 4.2 percent in June.
With inflation easing and economic activity flat, the European Central Bank is widely expected to cut its key deposit rate by a further 25 basis points to 3.50 percent. This rate continues to steer short-term money rates due to the ongoing abundance of liquidity.
However, note that as part of its March report on prospective changes to its operational framework, the bank indicated that by 18 September it would narrow the spread between the refi rate and the deposit rate (currently 50 basis points) to just 15 basis points. This would imply a larger, 60 basis point reduction, in the former to 3.65 percent.
Among US data, jobless claims for the September 7 week are expected to come in at 230,000 versus 227,000 in the prior week, which dropped the 4-week average by nearly 2,000 to 230,000.
Producer prices in August are expected to rise 0.2 percent on the month versus a marginal 0.1 percent rise in July. The annual rate is seen at 1.8 percent versus July's 2.2 percent which compared favorably with expectations for 2.6 percent. August's ex-food ex-energy rate is also seen up 0.2 percent on the month.
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.
