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Sterling slumped to a record low

Chris Scicluna
Emily Nicol
  • While far more stable than Gilts, Italian spreads widen after right-wing coalition on track for majorities in both houses of parliament
  • Japanese flash PMIs flag ongoing challenges
  • Flash euro area inflation estimates (due Friday) expected to report that the headline HICP rate jumped in September

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UK consumer confidence slumps to series low

Chris Scicluna
Emily Nicol
  • The flash euro area PMIs are set to imply contraction in economic activity at the end of Q3
  • GfK consumer confidence survey suggests that UK households have never been so downbeat
  • UK government set this morning to deliver a mini-budget and present its new growth strategy of unfunded tax cuts
  • Sunday’s Italian election to place populist nationalist Meloni at head of right-wing coalition

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BoJ maintains ultra-accommodative policy

Chris Scicluna
Emily Nicol
  • As expected, the SNB raises rates by 75bps to leave the BoJ the only central bank with a negative policy rate
  • BoE set to raise rates today by at least 50bps and confirm the start of active Gilt sales later this month
  • Fed hikes by 75bps as expected, but signals a higher terminal fed funds rate than previously suggested, above 4½%

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Survey suggests that French retail sales fell

Emily Nicol
Chris Scicluna
  • Ahead of Friday’s mini-budget, today’s monthly UK public finances figures saw net borrowing exceed expectations in August, in part reflecting record debt interest payments for that month
  • All eyes on the Fed tonight, with the FOMC expected to hike rates by 75bps and signal a terminal rate above 4% in its updated projections

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Japan’s CPI inflation jumps to the highest in eight years

Chris Scicluna
Emily Nicol
  • German producer prices smash records again in August due to energy shock but hints of cooling elsewhere
  • Sweden's Riksbank sets the tone for the week's monetary policy announcements, with a hike of 100bps in its Policy Rate to 1.75%
  • As the latest two-day FOMC meeting gets underway, the downtrend in US housing starts is expected to pause in August

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