Posted in:

The week in financial markets – 16 September 2016

Monday 12 September

  • China released its August activity which indicated a rebound from the softer July prints. Industrial production was reported as increasing last month to +6.3% YoY (vs. +6.2% expected) and retail sales increased to +10.6% YoY (vs. +10.2% expected). Fixed asset investment was unchanged at +8.1% YTD YoY, but came in ahead of expectations of +7.9%. That data follows the better than expected export numbers in August.
  • ECB’s latest CSPP numbers showed that after the previous short week, net purchases totalled €2.4bn (average €480mn/day) which is the second highest weekly run rate since buying began (average daily run rate of €352 since program started).

Tuesday 13 September

  • Germany’s ZEW survey dipped 2.5pts this month to 55.1 (vs. 56.0 expected). Whilst lower relative to August that reading is still some 5pts above the post-Brexit slump the index tumbled to in July. The expectations survey held steady at 0.5. The final August CPI revisions showed no surprises with the print left at 0.0% MoM and +0.4% YoY.
  • In the UK headline CPI in August was +0.3% MoM which was a shade lower than the consensus of +0.4%. RPI printed at +0.4% MoM and in line, while PPI input prices were up only +0.2% MoM (vs. +0.6% expected

Wednesday 14 September

  • In the US the only release was a slightly lower than expected import price index reading for August (-0.2% MoM vs. -0.1% expected).
  • In Europe the latest industrial production print for the Euro area was slightly softer than expected for July at -1.1% MoM (vs. -1.0% expected) whilst France reported no revision to the August CPI print of +0.3% MoM. In the UK the latest employment numbers were also released and largely met expectations. The ILO unemployment rate held steady at 4.9% YoY in the three months to July, while the Claimant Count rate was also unchanged at +2.2% YoY. Average weekly earnings did nudge down two-tenths to +2.3% YoY although that was a couple of tenths ahead of consensus.

Thursday 15 September

  • In the US, Headlines sales were down -0.3% MoM last month which was weaker than the market had pegged (-0.1% expected). The industrial production reading in August was -0.4% MoM (vs. -0.2% expected) with capacity utilisation dropping to 75.5% from 75.9%. The manufacturing data was a mixed bag. Empire manufacturing for this month did improve just over 2pts but not as much as hoped (-2 vs. -1 expected). Manufacturing production in August was softer than expected (- 0.4% MoM vs. -0.3% expected) however the Philly Fed manufacturing survey bounced an impressive 10.8pts to 12.8 (vs. 1.0 expected). On the inflation front headline PPI (0.0% MoM vs. +0.1% expected) was unchanged last month. Finally initial jobless claims (+1k to 260k) and business inventories (0.0% MoM vs. +0.1% expected) were non events.

Friday 16 September

  • In the US, the core CPI for August showed a MoM increase of 0.3%, beating expectation of 0.2%, which takes the YoY CPI to 2.3% compare to 2.2% forecast.

Match with a portfolio and start investing today

Simple, efficient and low cost, Moneyfarm helps you protect and grow your money over time.

Sign up with Moneyfarm today to match with an investment portfolio that’s built and managed to help you achieve your financial goals.

Make your money work harder for you, without breaking a sweat.

Get started

As with all investing, your capital is at risk. The value of your portfolio with Moneyfarm can go down as well as up and you may get back less than you invest.