BOE, ECB decide on rates

In the eurozone, markets will focus on the European Central Bank meeting when interest rates are expected to be cut by another 50 basis points after it joined a co-ordinated 50 basis point rate cut on October 8. On the data front, the economic schedule will release the eurozone retail sales figures for September. Manufacturing and Services Purchasing Manager Indices (PMI) are also due this week, providing markets with a gauge on the manufacturing and service sector in the eurozone. The eurozone Producer Price Index (PPI) is also due.

In the UK, the main focus will be directed towards the Bank of England's meeting on interest rates. Since the UK seems to be in the early stages of a prolonged rate easing cycle, a rate cut looks inevitable. Meanwhile, the economic schedule will release industrial and manufacturing production figures for September. Market participants will be able to gauge the health of manufacturing, construction and services. The Nationwide consumer confidence survey is also expected.

In the US, the release of the ISM manufacturing figures for October and ISM non-manufacturing composite and non-farm productivity data are due this week. Markets will also take a view on US consumer confidence. October's unemployment rate, and changes in non-farm and manufacturing payrolls will provide information on labour market conditions. The MBA mortgage applications and pending home sales data for September and the consumer credit release will provide an indication on US consumer spending. Factory orders, business inventories and construction spending are also out this week.

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