Sluggish US retail sales to support equity rebound?

Concerns in Asia weighed on European markets yesterday and in Asia overnight with new restrictive measures adopted by Chinese authorities against tech companies as well as concerns over a possible debt restructuring of major property developer Evergrande. Wall Street had escaped the gloom thanks to a rebound in energy stocks in the wake of rising commodity prices. Industrial production in August and the New York Fed survey were also better than expected, while import price growth eased slightly.

Japan’s imports accelerated but exports slowed in August. It is difficult to draw solid conclusions from this as base effects remain strong.

The markets are eagerly awaiting the day’s US figures and in particular retail sales: the sharp decline in car sales does not bode well, which could lead to a sharp downward revision of private consumption estimates in Q2 and consequently reinforce expectations of a status quo in Fed policy next week. In a well-known mechanism, the equity market could be happy with disappointing figures pulling rates down. It all depends on the extent of the disappointment.

EnergyScan - Economic news

The EUR/USD exchange rate remains close to 1.18.

Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

September 27, 2021

Germany and China in the spotlight

The German elections have produced an even closer result than expected. The outcome of the forthcoming negotiations to form a government coalition looks very uncertain. The SPD…
October 20, 2021

Mixed price evolution

European spot gas prices were mixed yesterday, while curve prices were more clearly downward. The latter continued their technical correction in a context of rather…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Subscribe to our newsletter

Don’t have an account yet?  Sign up here!