What you need to know before the open – 09/10
President Obama's comments last night – that there is "no magic bullet" to end the standoff between the two parties – seems to finally be drumming home to markets the ramifications of shutdown. US markets saw their biggest one-day slide in 11 months.
There was some stabilisation, however, on the news that Janet Yellen would be Ben Bernanke's successor as Fed chairman.
Asian markets drift on IMF warning, US shutdown
— High-Walk Int'l Ltd. (@HighWalk) October 9, 2013
Big turn overnight in Asia has ftse opening -15 @ 6355. Slight $ strength too with EURUSD 1.3550 and GBPUSD 1.6050
— Mark Murnane (@markhmurnane) October 9, 2013
#morningcall FTSE-20, DAX -12, CAC-1, IBEX-30, DOW+39 , S&P+5.5
— Joe Rundle (@joe_rundle) October 9, 2013
Following the Internation Monetary Fund's upgrading of its forecast for the UK economy yesterday, expectations are that the pound could do better than it has done over the last couple of days, provided industrial and manufacturing production data doesn't disappoint for August.
Key events:
- UK industrial production for August at 9.30am. Expected at 0.4 per cent, up from 0.0 per cent.
- UK manufacturing production for August at 9.30am. Expected at 1.0 per cent, up from -0.7 per cent.
- UK total trade balance for August at 9.30am. Expected at £-2.050, up from £-3.085
- UK goods trade balance for August at 9.30am. Expected at £-9.000, up from £-9.853
- ECB monthly report at 10.00am
- German industrial production for August at 11.00am. Expected at 0.9 per cent, up from -1.7 per cent.
- US MBA mortgage applications for October at 12.00pm.
- UK NIESR GDP estimate for 3 months to September at 3.00pm.