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Consumers come calling

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  • Japan saw stronger household spending and retail sales although the retail sales were in part driven by higher fuel prices rather than a self- sustaining demand. Sales of large items (perhaps a better indicator of where consumption is heading) rose 0.7% yoy in nominal terms.
  • The UK has consumer credit data, which given the government's policy attempts to encourage bank lending must still be in focus. Mortgage data may be a peculiar focus with the attention being paid to house price levels, although over a third of UK homes are now purchased without a mortgage.
  • China's authorities injected additional liquidity into the money markets, validating the view that the PBoC will not allow interbank interest rates to spike up in the way that they did over the course of the summer.
  • The US is issuing retail sales data today. Weak demand for autos is likely to drive down the headline number, but the ex-autos figure is forecast at a very robust 0.7%. Sales of the new iPhone could make up to 0.2% of that (a fact which says something about the prevailing American consumer culture).

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