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While we are waiting

| Posted by: Paul Donovan | Tags: Paul Donovan

  • Markets wait in eager anticipation for the US Federal Reserve tomorrow. It is not the decision that is likely to matter so much as the accompanying statement. Never has the English language (or what passes for the English language in the US) been subject to such scrutiny.
  • US durable goods orders are due out, as a distraction in the meantime. The third quarter growth is more about inventory moves than capital spending, but markets will give the data some attention. Consumer confidence and the Richmond Fed make an appearance.
  • UK GDP is due out. The UK recovery (real and nominal) has been relatively strong – albeit the recession was relatively harsh. The question is whether this starts to impact the Bank of England as wage rates pick up in the face of economic strength.
  • The EU's Juncker is talking to the European Parliament on the refugee crisis. The political consequences of this situation may have a bearing for markets. There are two ECB speakers, but the dread word "vigilant" has been uttered – what else is there to say?