What to expect this week?

Next week the market will be focus on the details of the United States government rescue plan that will enable financial institutions to clean up their balance sheets from bad investments in credit derivatives.

The plan is likely to be accepted by Monday which could bring some relief to the world’s financial markets, already hit by the continuing economic weakness. Furthermore, in the U.S. it is likely that non-farm payrolls dropped again and unemployment remained near 6% in September. We also expect a decline in personal disposable income as the effects of the tax rebates wears off. In Canada, Q2 GDP will likely deteriorate. In the Euro Area, ECB will keep rates on hold but growth conditions are likely to deteriorate further: retail sales is expected to drop, both the Services and Manufacturing PMI likely to be confirmed in contraction territory and unemployment rate likely remain unchanged. In the United Kingdom, the Q2 GDP's final release along with the PMI surveys will bring more shadow for the second largest economy in Europe. In Japan, the August unemployment rate will probably increase and the Tankan Survey will show a negative outlook for the overall economy. Finally, Australia’s trade balance is expected to go back to surplus and retail sales growth to increase. 

Anna Fedec, contact@tradingeconomics.com
9/27/2008 11:45:27 AM