The Economic Outlook In Euroland And Germany Is Getting Worse
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Today the market will be calmer as I do not have very important data that could be confusing. Mainly, the eyes of traders will be focused on the results of the ZEW Economic Sentiment in Germany and in Euroland as well as the statements of bank criminals in these regions. From the American economy, we are only waiting for the report on Industrial Production.
The Reserve Bank of Australia (RBA) events
As the day started, events from Australia arrived.
The first event took place at 2:05 CET, and it was a speech. The speaker was Michele Bullock, who is an Assistant Governor of the Reserve Bank of Australia. Her public engagements are often used to drop subtle clues regarding future monetary policy.
The RBA minutes provide a detailed record of the discussions held between the RBA’s board members on monetary policy and economic conditions that influenced their decision on adjusting interest rates and/or bond buys, significantly impacting the Australian Dollar (AUD).
ZEW Economic Sentiment
German ZEW Economic Sentiment
According to the report on the six-month economic outlook, the mood is currently pessimistic. Another decline is projected from -61.9 to -65.7. Since March, the indicator has been below 0, which means negative results. In June it looked like the situation could improve, but the next results quickly showed that it was a temporary change and that the downward trend has been consistently maintained since then.
Source: investing.com
Eurozone ZEW Economic Sentiment
In the euro zone, the outlook is also negative. It is expected to drop from -60.7 to -61.2. Contrary to Germany, the situation in the euro zone deteriorated only in May. The downward trend has continued since then. The higher results than the German index are due to the fact that 19 Member States have an influence on the European one.
Source: investing.com
Speeches
Also today, representatives of the central banks of Europe and Germany will take the floor. The speeches will be held in the evening.
The first one at 18:00 CET and the speaker will be a member of the Executive Board of the European Central Bank, Isabel Schnabel.
One hour later at 19:00 CET, Joachim Nagel, who is Deutsche Bundesbank President and voting member of the ECB Governing Council, will speak.
Canada Housing Starts
The annualized number of new residential buildings that began construction during the reported month will published today. It is expected to drop to 263K from 267.4K. At the beginning of the year, the trend was exemplary, with the highest level recorded in May (287.3K). After this reading, the trend changed to a downward trend. The positive fact is that since the April reading the result was higher than expected.
Source: investing.com
Canada Foreign Securities Purchases
The overall value of domestic stocks, bonds, and money-market assets purchased by foreign investors in Canada is expected to increase compared to the previous month. Canada Foreign Securities Purchases is expected to reach 17.32B. Purchase by foreign investors will provide new money to the Canadian economy and will also demonstrate its attractiveness.
During the year, the appearance of the indicator varied considerably. At the beginning of the year it was in a downward trend, then the readings for January and February were downward. After these negative results, the highest reading was recorded at 46.94B. This very positive result was followed by a shift to a downward trend. A rebound after a negative reading in June could mean an improvement.
US Industrial Production
There are no forecasts for the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities. Observing the last result, the trend is downward, and the last reading was 0.13% lower than the previous reading (3.81%). We can only expect it to decline slightly.
Summary
- 2:05 CET RBA Assist Gov Bullock Speaks
- 2:30 CET RBA Meeting Minutes
- 11:00 CET German ZEW Economic Sentiment (Oct)
- 11:00 CET ZEW Economic Sentiment (Oct)
- 14:15 CET Housing Starts (Sep)
- 14:30 CET Foreign Securities Purchases (Aug)
- 15:15 CET US Industrial Production
- 18:00 CET ECB's Schnabel Speaks
- 19:00 CET German Buba President Nagel Speaks
Source: https://www.investing.com/economic-calendar/
