Brigid Riley provides an overview of the day’s trading in the European and international markets.
Investors will be searching for something encouraging to start the fourth quarter after a difficult September, yet a flood of economic data from Europe on Monday may not provide the boost they are hoping for.
Following Chinese PMI data over the weekend that indicated inconsistent levels of services and industrial activity last month, a wave of purchasing managers index (PMI) data from around the world continues with Europe on Monday.
Markets have been suffering as stocks, bonds, and non-dollar currencies largely declined in the previous month as investors were accustomed to the concept that U.S. interest rates will remain high for an extended period of time.
The good news from last week that inflation in the region fell to its lowest level in two years was overshadowed by the fact that the euro zone has been dealing with recession concerns amid a host of other data.
After the preliminary report last month painted a hazy picture of the region’s economic health, the final manufacturing PMI data from the EU on Monday will be closely watched. The index showed a rise in September from August’s 33-month low, but still lingered below the line separating expansion from contraction.
Despite the fact that the Chinese and Indian markets are closed this week due to holidays, this week will still provide investors and central banks with a wealth of new data to work with, including the critical producer price index later in the week and the release of the euro zone’s unemployment rate on the same day.
Oil prices are up again on Monday, reversing some of the losses from Friday.
As usual, as numerous U.S. central bank officials get ready for talks scheduled throughout the week, beginning with a few Fed speakers on Monday, the future of the Federal Reserve interest rates will be in the spotlight.
Regardless of indicator outcomes, markets can take solace in a last-minute stopgap funding bill that keeps the U.S. government open through November 17. This ensures that important data releases from the largest economy in the world, including Friday’s monthly payrolls report, will be made available on schedule.
Important events that could affect markets on Monday include:
-September final manufacturing PMI for the Eurozone, Germany, France, Italy, Spain, Switzerland, Sweden, the United Kingdom, and the United States.
-August unemployment figures for Italy and the euro zone
-UK housing prices in September
Luis de Guindos, vice-president of the European Central Bank, Michael Barr, vice-chair for supervision of the Federal Reserve, John Williams, Patrick Harker, and Loretta Mester, president of the Cleveland Federal Reserve are the central bank speakers.