FOMC to decide on rates

In the US, the main focus will be on the Federal Open Market Committee (FOMC). Markets are expecting the Federal Reserve to keep interest rates on hold at two per cent. A view on inflation will be provided with the release of the core and headline Consumer Price Index (CPI) for August.

The state of the US housing market will be established through the release of the NAHB index and housing starts figures for August. On the activity front, market participants will take a view on the country's industrial production figures, while the Philadelphia Fed survey will provide a view on the general business conditions in a number of US regions. Moreover, current account figures, leading indicators and some employment related figures are to be released this week.

In Euroland, the September Zew confidence survey for the whole euro area will be closely monitored by market participants. This survey is the first indication of economic confidence during the third quarter. Labour market developments in the quarter will be provided by the release of the labour costs and unemployment rates for the second quarter. The release of the Harmonised Index of Consumer prices (HICP) will provide a view of the pricing levels in the eurozone. On the supply side, markets will also have the release of the construction output figures for July. The Eurozone trade balance figures will close the week's data schedule.

In the UK, the minutes of the September Monetary Policy Committee (MPC) will provide an insight on the voting pattern behind the decision to leave the rates unchanged. The consumer price index is also out this week. The labour market report should confirm the downturn in the labour market while retail sales are expected to ease further. The CBI September industrial trends survey, a survey on trends in output, prices, exports and costs, is likely to have softened.

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