At first glance a quiet week for global markets, with Brexit hanging around, worries about the health of the global (and US economies) with mid-month surveys of manufacturing and services to be released and the US third-quarter earnings season which is now well underway.
Brexit will burble onwards after the latest attempt to leave by Boris Johnson’s government was thwarted at the weekend and he was forced to ask the EU for an extension.
But he is making another attempt the get the house of Commons to vote on his proposal tonight.
In Australia it will be a very quiet week – figures on skilled vacancies, a couple of earnings reports (Australian Pharmaceutical Industries – final – and Blackmores – September quarter update) and more discussion of the economy’s health.
In the US, the main focus will be on the October mid-month business conditions surveys to be released on Thursday. New and existing home sales data will also be issued and there are also durable goods orders on Thursday.
The September quarter earnings reporting season ramps up in the week ahead – watch for results from Amazon and Boeing (See separate story).
The AMP’s chief economist says the European Central Bank meeting on Thursday “is unlikely to provide any new insight on the significant easing package announced at the ECB’s September meeting.”
“However, it will be Mario Draghi’s last as President before Christine Lagarde takes over and may see Draghi reflect on the experiences of his eight-year term.
“His key legacy has been the preservation of the Euro through his 2012 commitment to do “whatever it takes” which he vigorously backed up by the deployment of a range of new monetary policy tools and constantly berating politicians to do more,” Dr. Oliver wrote at the weekend.
“All of which enabled the Eurozone to stay together and emerge from the Eurozone debt crisis strengthened and more integrated.
“Under Draghi’s watch Eurozone unemployment has fallen from a high of 12.1% to 7.4% now, despite a long period of fiscal austerity. Eurozone business conditions PMIs to be released Thursday for October will be watched for signs of improvement after their sharp leg down in September,” Dr Oliver added.
Japan’s October business conditions surveys will also be released on Thursday.