Daily Market Report 23rd November
Good afternoon everyone,
Bank of England rate setter Michael Saunders warned that the UK economy faces growing capacity pressures and that interest rates may rise more quickly than is currently priced into markets. Meanwhile, the European Central Bank’s Praet noted that while downside risks for the Eurozone growth were mounting, the outlook was nevertheless normalising.
Media sources reported yesterday that the UK and the EU have agreed a draft political declaration on their future relationship. This suggests sufficient progress has been made for the heads of the other EU governments to sign off the Brexit deal at their special EU summit on Sunday. EU Council President Tusk confirmed that the draft had been sent to member governments. Meanwhile, UK PM May stated that she would spend the next 72 hours persuading other EU leaders to back the deal.
US markets return from the Thanksgiving holiday today but trading volumes are likely to be light. The November PMIs are the only data of note. These are expected to point to a continuation of buoyant economic growth in Q4. In Canada, September retail sales will be watched for signs of a rebound, while October annual headline inflation is expected to have held at 2.2%.
Upcoming Economic Data.
Friday, 23rd November 2018
14:45 US - Markit PMI