Weekly financial market overview 27.09.-03.10.
Main events of the previous week
US President Joe Biden signed a bill on temporary government funding until December 3, which delays the shutdown (suspension of the work of some government agencies), which was supposed to come into force at midnight on October 1. Among other things, the draft law, signed by the President, includes additional appropriations for disaster relief and those who have been evacuated from Afghanistan. Prior to this, the bill passed the approval of the Senate and House of Representatives of the US Congress. Congressmen and the head of state managed to approve temporary funding for the work of the government just a few hours before the deadline. The shutdown threat stemmed from a disagreement between Republican and Democratic congressmen over the US national debt. An interim version of the draft budget for the next fiscal year was discussed in the House of Representatives, but the Republicans blocked it in the Senate. They oppose the additional condition to increase the federal public debt, introduced into the draft budget by the Democrats. The United States approves budget allocations for 13 areas each fiscal year, including agriculture, justice, energy, and other industries. Bills for each direction must be signed by October 1. They account for less than 30% of budget expenditures, the rest goes to mandatory expenditures that are made in an automatic manner (for example, health insurance and pension programs). If Congress and the President do not agree on the allocated budget money, the government partially stops working, and employees are sent to idle time. The work is continued by structures and departments that perform vital functions.
Eurozone. The consumer price index in September rose 0.5% versus August, while the annual inflation rate was 3.4%. The growth of the core inflation rate, excluding food and energy, in September amounted to 1.9% y/y.
The unemployment rate in August fell by 0.1 percentage point and amounted to 7.5%.
US. August data show that durable goods orders rose 1.8% from the previous month. The growth of the base indicator, which does not include civil aviation, amounted to 0.2% over the same period.
The number of initial jobless claims for the week was registered in the amount of 362 thousand, which is 11 thousand more than the week before and 27 thousand more than predicted by analysts.
In August, the level of personal income, as expected, increased by 0.2% mom, while in July incomes showed an increase of 1.1%. The level of personal spending in August increased by 0.8% in July.
China. According to the assessment of the Caixin Bank, in September the PMI in the manufacturing sector rose by 0.8 percentage points and amounted to 50 points, in turn, according to the National Bureau of Statistics of China, the PMI Manufacturing in September was 49.6 points.
Key events this week
- On Tuesday, the US is to publish data on the trade balance for August.
- On Wednesday, the Eurozone will report on retail trade for August and the data on changes in oil inventories for the week will be published in the US.
- On Thursday, the US will know the number of initial jobless claims for the week.
- On Friday, the US will publish data on the situation in the labor market in September.
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