Week Ahead Watch List

Mixed to favorable German data is expected for the coming week with softness expected for GfK consumer confidence on Tuesday, only a little heat for consumer prices on Thursday, steady strength in employment also on Thursday, and lastly a bounce is expected for retail sales on Friday. For the Eurozone, steady heat is expected for September's inflation data on Friday, preceded by easing economic sentiment on Wednesday and expected slowing in M3 money growth on Monday. US durable goods are expected to show modest improvement on Monday with even more modest improvement (nearly none at all) for US consumer confidence on Tuesday. PCE price indicators on Friday, where mixed is the expectation, will be the highlight of the US calendar followed by an ISM manufacturing report that is expected to remain around the very solid 60 line. Japanese data are expected to come in flat, both industrial production on Thursday and the quarterly Tankan report on Friday. Chinese data will be headlined by the Caixan manufacturing PMI which is not expected to emerge back above breakeven 50. Continued weakness is expected for both Swiss leading indicators on Thursday and monthly GDP from Canada on Friday.