14/10/16 - Sturgeon Pushes for Scottish Referendum


Scotland’s First Minister Nicola Sturgeon has confirmed that an Independence Referendum Bill will be published next week. The publication of the bill does not mean that a vote is imminent. However, Sturgeon’s words offer a hint that if she is not satisfied with Britain’s current negotiations with the European Union, a new vote could be held before those talks are completed. Sturgeon admitted that she’s under significant pressure to call a second referendum, and yesterday’s announcement should appease this.



The number of Americans filing for unemployment benefits held at the lowest level since November 1973, indicating further labour market strength that could encourage the Federal Reserve to raise interest rates before the end of the year. Thursday's report from the Labour Department reinforced the general view that economic growth picked up in the third quarter; after a slow performance in the first six months of the year. Initial claims for state unemployment benefits were unchanged at a seasonally adjusted 246,000 for last week.  



Global equity markets dropped to a three-month low on Thursday, while the Dollar dipped, after a sharp decline in Chinese exports created fresh concerns about the health of the world's second-largest economy. While global demand in general cooled, exports to the European Union and the U.K. suggest that the downside risks to China’s economic recovery from Brexit is an important factor. Exports fell by 9.8 percent to the EU, to the U.K. by 10.8 percent, and to the U.S. by 8.1 percent.

Key Announcements

13:30 PM – USD : Core retail sales, month on month, forecast at 0.4% against a previous of -0.1%
13:30 PM – USD : PPI month on month, forecast at 0.2% against a previous of 0.0%
13:30 PM – USD : Retail sales month on month, forecast at 0.6% against a previous of -0.3%
Tentative – UK : BOE Governor Carney speaks
15:00 PM – USD : Preliminary University of Michigan Consumer Sentiment, forecast at 92.1 against a previous of 91.2
18:30 PM – USD : Fed Chair Yellen speaks