The week saw US consumer sentiment rise to a three month high in August largely boosted by retailer’s sales and the low mortgage rates. Consumer’s concerns were over the possibility of higher food price as the US Drought worsens. The University of Michigan consumer sentiment highlighted consumers’ expectations in both short and long term for higher inflation. Philly Fed Manufacturing which was out on Thursday of last week was worse than expected but has improved from the this year’s low point which was back in June where the index registered -16.6.
Bottom line markets seemed to be calmed by the news that Germany was supportive of ECB moves. ECB has put plans forward for the Bank and the EFSF to buy bonds of debt laden EU countries to lower their borrowing costs.
THE WEEK AHEAD
Monday: Nothing to note Data wise
Tuesday: Nothing to note Data wise
Wednesday: US Existing Home Sales, FOMC Meeting, US Crude Inventories, China HSBC Flash Manufacturing PMI
Thursday: EUR German Flash Manufacturing PMI, EUR Flash Manufacturing PMI, US Employment Claims, US Flash Manufacturing PMI, US New Home Sales
Friday: US Core Durable Goods Orders