Sentiment signals more of the same
- The Euro area provides the main data focus with the release of the manufacturing and service sector PMI data. These numbers need to be treated with a healthy level of suspicion, but markets still tend to value them. The picture of moderate expansion should remain.
- Comments from the US Federal Reserve have generally stuck to the standard script. Williams was reiterating the case for a December hike in interest rates quite firmly. Bullard of the Fed ventured into the dangerous territory of currency forecasting, suggesting limited dollar strength.
- The Venezuelan government has been making dire forecasts of its own, suggesting oil at USD20 per barrel in the absence of OPEC action. Venezuela may be biased in its desire to see higher oil prices. Oil where it is will still increase headline inflation in economies like the US.
- Emerging markets may attract a little attention today, in the wake of the election of a president who is perceived to be more pro-business than his predecessor.