Against the backdrop of a very quiet week for data releases, market attention was focused on two geopolitical events, namely the Scottish referendum on independence and the EU’s sanctions with Russia over its involvement in the Ukraine crisis.

Elsewhere, the UK sustained the momentum of its recovery, as data in the US showed a rise in unemployment benefits claims. In the meantime, China’s consumer inflation eased while factory gate prices extended their decline.

Last Friday the EU agreed to impose new sanctions on Russia over its role in the Ukraine crisis following Finland’s pressure to do more to end the conflict in eastern Ukraine. The recent talks among the member nations follow EU’s decision last week to put on hold a second package of economic penalties against Russia over its encroachment in Ukraine.

Industrial production in the UK rose more than economists forecast in July, indicating that momentum in the recovery was sustained into the start of the third quarter. Output increased 0.5 per cent from June, the most in five months, with the median forecast was for a gain of 0.2 per cent. Year on year, production rose 1.7 per cent. Meanwhile, London house prices rose at the slowest pace in more than three years in August, leading a cooling across the country.

Across the Atlantic, the number of Americans filing for unemployment benefits unexpectedly rose to a two-month high, interrupting a steady decrease to the lowest level since before the last recession. Jobless claims climbed by 11,000 to 315,000 last week, which included the Labour Day holiday. This was the highest reading since June and exceeded a Bloomberg survey median forecast of 300,000.

This article was compiled by Bank of Valletta for general information purposes only.