Snapshot - Economic & Strategy Viewpoint
Caspar Rock: Monday markets - the week ahead on 9 September
Weak manufacturing activity raises questions about US growth. In the UK, a Brexit delay is looking more likely.
- Is US data starting to turn? Hiring was slowing than expected in August, though wage growth remained solid. The bigger shock was an index of manufacturing activity, which fell to the lowest level in a decade.
- The UK parliament has passed legislation designed to prevent a no-deal Brexit, increasing the odds of a delay. A general election now looks like a near certainty, with the only question being whether it will take place before or after the 31 October deadline.
- The ECB meets on Thursday and is expected to introduce new easing measures, potentially including a return to QE.