ECB to loosen policy, data to prompt Fed and BoE easing bets?

Welcome to your guide to the week ahead in the markets. 

ECB monetary policy meeting  

Expectations are high ahead of this week’s European Central Bank policy meeting. A run of poor Eurozone data has raised bets on further rate cuts, while investors have snapped up government bonds in the bloc in anticipation of a potential restart to the quantitative easing programme. 

US ISM was dire – will CPI, retail sales and sentiment be any better? 

Key releases on the US calendar this week could crank up the odds of more easing from the Federal Reserve before the year is through. Last week’s ISM manufacturing print shocked, with the index falling into contraction territory. Soft readings from the upcoming CPI, retail sales, or University of Michigan sentiment index could see further dovish bets. 

UK GDP and average earnings – background noise? 

Sterling remains almost exclusively at the mercy of Brexit-related news flow, but growth and wage figures might draw some attention. After having been stuck on hold thanks to the uncertainty of Brexit, the Bank of England may have to be quick out of the starting gate once the October 31^st departure deadline passes. Data recently has been weak and another blow from either growth or earnings would see expectations of a rate cut climb. 

Kroger earnings 

It’s been another bad year for Kroger so far. KR is down 12% year-to-date, compared with rises of 14% for the S&P 500 and 16% for its industry. Peers such as Target and Walmart have had strong quarters. Will Kroger’s own investments in expanding online and delivery offerings help it deliver a strong Q2 report? 

Corporate diary 

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Key Economic Events

Stay ahead of the markets by understanding what key economic events are coming up, and what impact they could have on your trades.