Waiting on the Fed
- The US Federal Reserve decision on Wednesday holds markets in its thrall. Not because of the decision (a change is not expected) but because of expectations that there may be some indication of thinking around the bond buying program ahead of a September decision.
- Chinese data has been causing some concern, with evidence of weaker industrial activity and worries about an audit of government spending. Meanwhile Japanese retail sales weakened, perhaps reflecting concerns about real income growth or lack thereof..
- The German general election is less than two months away, and opinion polls are likely to assume greater importance. The weekend saw polls suggesting that Chancellor Merkel's coalition has had their lead cut relative to the opposition.
- The data calendar is very quiet. UK bank lending figures will give some insight into the success or otherwise of the Bank of England funding for lending scheme. Meanwhile the United States offers up pending home sales numbers.
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