Analysts at Danske Bank suggest that the Brexit remains in focus also today, in addition to the release of German ZEW survey.
Key Quotes
“Extended discussions around the Brexit strategy are likely to dominate today’s UK cabinet meeting after negotiations with the EU broke down again over the weekend. Markets will keep an eye on any indication that signal a softening stance of the DUP party on the Irish border issue ahead of the EU’s Brexit working dinner tomorrow.”
“Furthermore, risk sentiment in global markets remains shaky, not least due to rising geopolitical tensions around Saudi Arabia and Italian risks simmering in the background.”
“The Italian government will start holding first discussions on the budget law today after having submitted its budget proposal to the EU yesterday evening.”
“German ZEW expectations for October will give a first indication of the economic momentum in Q4 and we will watch out for whether the recent recovery in the forward looking expectations component continues in October, despite lingering headwinds from the external and political side.”
“The UK labour market report for August is due out. We expect annual earnings growth to stay around the 3% mark, with the unemployment rate remaining stable at 4.0%.”
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