In the US yesterday, Industrial output fell by 0.1% in August, the first monthly drop since January 2014. This is following on from the 0.7% month on month manufacturing gain in July. This is likely to be the result of poor seasonal adjustment figures with seasonal auto shut-downs in July could be over-adjusted in July and weighing on the August numbers.
The recovery in the euro area has remained disappointing especially in relation to the largest economies Germany, France and Italy. Confidence in the euro one is weakening with the current state of demand is reflected in the decline in inflation, which is near zero in the zone as a whole and negative in several countries. The OECD has warned that the eurozone’s weak inflation rate raises the risk of slipping into deflation, which could spread stagnation and aggravate debt burdens.
The Bank of England reported mortgage approvals for house purchases eased back to 64,212 from 66,100 in July and 66,923 in June. These figures were released after Friday's reports showing a slowdown in September.
Lenders are to be prevented from allocating more than 15% of new residential mortgages to individuals borrowing four and a half times their income or greater. Policy makers have acknowledged the limit will only have an impact if house prices rise more than 20% between now and early 2017.
08:55 BST – EUR :German Unemployment change(Sept) expected to go to -2k from 1k
09:30 BST- GBP : UK GDP – Q2 expected to go to 3.2% from 3.0%
10:00 BST -EUR : Eurozone Consumer Price Index (Sept) expected to go to 0.3% 0.4%
15:00 BST- USD: US Consumer confidence (Sept) expected to rise to 92.5 from 92.4
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