Daily Market Report - 17/10/2014

Annual inflation within Europe came in at 0.3% in September 2014, down from 0.4% in August. This is the lowest rate recorded since October 2009. In September 2013 the rate was 1.1%. The monthly inflation was 0.4% in September 2014, down from 0.5% in August. This is the lowest rate recorded since September 2009 In September 2013 the rate was 1.3%, annual inflation fell in seventeen Member States, remained stable in two and rose in nine.

The euro tumbled as a rout in bonds from the region’s periphery boosted bets the European Central Bank will expand stimulus that tends to lower exchange rates in order to quell the turmoil.

Applications for unemployment benefits in the U.S. unexpectedly dropped last week to their lowest level in 14 years as employers avoided trimming staff even as global growth weakens.

Jobless claims decreased by 23,000 to 264,000 in the week ended Oct. 11, the fewest since April 2000 and lower than any projection. Companies are beefing up staff as payrolls this year remain on track for their biggest gain since 1999.

The risk remains that economic slowdowns in Europe and China, a plunge in commodity prices, geopolitical and health risks including the Ebola outbreak can hurt confidence and curb further progress.

Industrial production in the U.S. rose in September by the most since November 2012, driven by a surge at utilities and a rebound in manufacturing, the 1 percent advance in output at factories, mines and utilities exceeded the highest forecast of 0.4 percent, utility production was the strongest since May 2012.

Corporate orders for equipment and sustained consumer spending on the heels of job gains, cheaper borrowing costs and lower gas prices kept factory floors busy last month. At the same time, a weakening in global markets threatens to limit the pace of production.

Key Announcements:
1.30pm BST- USD - Building Permits
1.30pm BST- USD - Fed Chair Yellen Speaks 
1.30pm BST-  USD - Housing Starts  
2:55pm BST - USD   Prelim UoM Consumer Sentiment 
2:55pm BST - USD  Prelim UoM Inflation Expectations    

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