German IFO and UK GDP amongst market movers today – Danske Bank

Analysts at Danske Bank point out that in Germany, we get the Ifo expectations, which they expect to rise further to 107.9 in October, in line with the improved economic expectations indicated by the ZEW October release last week.

Key Quotes

“In the UK, we are set to get the first estimate of Q3 GDP growth. According to the soft economic indicators released so far, GDP growth was around 0.3-0.4% q/q, with 0.4% being our estimate. We do not get subcomponents but it is likely growth was held back by a combination of negative real wage growth and Brexit uncertainties, which have slowed private consumption growth and business investment growth, respectively.”

“In the US, we will get one of the most important data releases of the week in terms of core capex for September. We believe core capex rose just 0.2% m/m after two very strong months, which would still be a sign that the investment recovery continues.”

“Today, we have the Bank of Canada rate decision, but more important are the monetary policy decisions tomorrow.”