What you need to know before the open – 07/11
A couple of things of note today. We've got US GDP and, at the same time, European Central Bank president Mario Draghi will be speaking. The press conference will be interesting in terms of what Draghi has to say, after the mounting speculation as to whether the bank will cut rates today or hold off until December. According to Credit Suisse data, however, traders are pricing only a four per cent probability of a rate change today.
Consensus is that the Bank of England's latest monetary policy meeting (also today) won't see a change to the bank rate or QE.
In the US, a Fed taper is looking less and less likely this year, regardless of today's data and tomorrow's employment report.
Good morning. Just over half an hour until the open and the FTSE100 is forecast to start -5 at 6737.
— David Jones (@DavidJones_IG) November 7, 2013
Key events:
- German industrial production for September at 11.00am. Expected at 0.2 per cent, from 1.4 per cent.
- UK Bank of England interest rate decision at 12.00pm. Expected unchanged at 0.5 per cent.
- Eurozone ECB inflation rate decision at 12.45pm. Expected unchanged at 0.5 per cent.
- Eurozone ECB monetary policy statement and press conference at 1.30pm.
- US GDP price index for the third quarter at 1.30pm. Expected at 1.3 per cent, from 0.6 per cent.
- US initial jobless claims (2 Nov) at 1.30pm. Expected at 332,000, from 340,000.
- US personal consumption expenditures prices for the third quarter at 1.30pm. Expected at 0.8 per cent, from -0.1 per cent.
- Eurozone ECB president Draghi's speech at 7.00pm.