Pre Fed Friday
- With the Fed meeting next week, and the concerns about the timing of a scaling back of quantitative policy dominating the headlines, today is not really a day where economic fundamentals are going to play too large a role. Positioning ahead of the Fed is likely to drive markets instead.
- We will have industrial production (seen supported by utilities production) and preliminary Michigan consumer sentiment. Sentiment data has tended to overreact to underlying fundamentals in the US, but high frequency sentiment indicators suggests a broadly sideways move.
- The Euro area big four economies are meeting on the unemployment crisis (and "crisis" probably does not do justice to the calamity of Euro unemployment). However as unemployment is driven by structural problems in a cyclical downturn in a dysfunctional monetary union, the summit is not likely to accomplish much.
- Japanese economics minister is promising unprecedented speed when it comes to implementing reforms. The speed has not exactly been overwhelming to date, and investors are instead debating when markets will return to pre-Abe levels or worse.
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