Bank of England, ECB rate decisions

In the US, markets will focus on the August employment report, which among others will provide a view on the non-farm payrolls and the unemployment rate. The release of the ISM manufacturing index will provide a view on the state of the US industry while the ISM non- manufacturing gauges business conditions in non-manufacturing industries, both for August.

Meanwhile, factory orders will provide an insight on future economic activity. Elsewhere, markets will also take a view on the confidence of US consumers. The Fed's Beige book together with data on construction spending, vehicle sales and the employment cost index complete this week data calendar.

A packed week of economic data is awaiting the European economy. The European Central Bank is expected to leave rates unchanged at its meeting on Thursday. Of similar importance is the release of the preliminary euro-zone Gross Domestic Product (GDP) for the second quarter. Markets should also get the final release of the Services and Manufacturing Purchasing Manager Index (PMI) for August.

A view on the consumer spending patterns in the wide euro area will be provided by the retail sales figure for July. Elsewhere, the release of the euro area Producer Price Index (PPI) figures in July is possibly too early to capture the impact of a declining oil prices.

In the UK, the Bank of England is expected to maintain rates on hold this month. Meanwhile, markets should get the final release of the Services, Construction and Manufacturing PMI. The Nationwide Consumer confidence survey for August is also due to be released this week. Mortgage approval during July is likely to confirm the slump in the UK housing market.

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