Analysts at Danske note that the sentiment will be driven by the effects of the Saudi oil plants attack and the repercussions for financial markets, as the data docket remains a thin-showing.
“The oil price jumped 10% to USD66 per barrel overnight following a drone attack on Saudi production facilities. The attack is set to lead to a temporary loss of 5.7 million barrels per day corresponding to 5% of the world’s oil output.
US President Donald Trump tweeted overnight that the US is ‘locked and loaded depending on verification, but we are waiting to hear from the Kingdom…’.
The new uncertainty in the oil market adds to an already long list of uncertainties facing the global economy and is set to increase the downward pressure we are currently witnessing.
On the data front today we get the US Empire index for September. The index recovered a bit in the past two months following a big drop in late spring.
UK’s Prime Minister Boris Johnson meets with EU Commission President Jean-Clause Juncker on Monday in his first negotiations.”