The new week starts and investors will focus their attention on the October business confidence indices for Germany and the euro zone, in addition to the recurring issues of previous weeks, such as the evolution of the electoral campaign in the United States and the messages that the president may launch, Donald Trump, in his incorporation into speeches after recovering from the coronavirus.
For Sara Carbonell, from CMC Markets, this week will continue with the same catalysts, such as the elections in the United States, the stimulus plan in that country, the messages from President Donald Trump and the development of coronavirus infections.
Regarding economic data, the industrial production index of the euro area for August will be published on Wednesday and the consensus of analysts expects that slow down your growth compared to July, while maintaining a positive rate, adds this analyst.
On Thursday, the crude reserves and the requests for unemployment benefits from the US will be known, which last week still showed the weakness in the US job market, adds Carbonell.
Stefan Rondorf, investment manager at Allianz Global Investors, recalls that the second debate of the US presidential campaign could take place this week, unless Trump’s health makes it difficult. In addition, in Europe we will have to be attentive to the summit of the European Union at the end of the week, where some decisions could be taken on the Brexit process.
In the United States, data related to consumption stand out: retail sales for September on Friday and the same day the Consumer Confidence Index from the University of Michigan for October will give an indication on the willingness to spend and the mood of Americans after the reduction of the government’s public benefits, according to this analyst.
For Singular Bank, another center of interest will be on Friday the final CPI data for September of the euro area, which could confirm the downward pressure of the covid-19 crisis on the price level despite monetary stimuli from the ECB .
Tuesday will be announced September evolution of the CPI of the US and on Friday 16 the evolution of industrial production in that country in September will be published, according to this source.