Given the ECB's decision to re-examine its policy stance at its December meeting in the light of growing downside risks to growth and inflation, today's preliminary German inflation prints for October will attract some attention ahead of tomorrow's euro area CPI release. October euro area confidence indices and German unemployment figures will also be scrutinised for clues on near-term prospects for activity.
Following yesterday's FOMC decision, the preliminary estimate of US Q3 GDP growth will offer an insight into how US activity responded to the slowdown in global growth and rise in financial market volatility during the quarter. Growth of the U.S. is likely slow to around 2.0% (saar) down from 3.9% in Q2 largely reflecting a widening trade deficit and slower inventory growth, says Lloyds Bank. The key domestic drivers of activity, especially household consumption, are expected to remain firm.
Domestically, the September BoE mortgage approvals release will be the key focus. An increase to 72.2k from 71.0k in August is anticipated, the unexpected decline in the corresponding BBA figures released on Monday point to downside risks, states Lloyds Bank.
