Key events in developed markets
A batch of sentiment indicators in Europe and the US this week are likely to paint the picture of a struggling manufacturing sector. We'll also see two central bank meetings from Australia and Canada - both expected to hold. Add US non-farm payrolls to the mix on Friday, should all make for an interesting week ahead
US: Data to support a December hold
Next week’s data should confirm that the Federal Reserve will be on hold in December.
Officials had already indicated that they wanted to take stock after three rate cuts implemented since July and with third-quarter GDP being revised higher and the jobs report likely showing a strong rebound in employment (admittedly thanks in large part to the ending of the strike at General Motors) they will have plenty to justify a pause. Nonetheless, we remain cautious on the outlook given weak global demand, the strong dollar and lingering trade tensions. The ISM indices are likely to remind us that growth has slowed and the manufacturing sector, in particular, is struggling.
We still see a strong chance of further rate cuts in early 2020.
Bank of Canada to remain on hold
The bank of Canada will probably leave interest rates unchanged but there is a growing chance of a rate cut given the recent stated concern about the global backdrop and the vulnerability of Canada to global demand and commodity price moves.
Developed Markets Economic Calendar
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Our view on next week’s key events This bundle contains {bundle_entries}{/bundle_entries} articlesThis publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more