Global Week Ahead: Don’t hold your breath

After this week’s heavy calendar, next week will be notably calmer, especially in terms of economic data releases. Luckily, politics and corporate earnings reports will pick-up some of the slack. However, the most pressing questions are unlikely to be answered next week.

In the Euro zone, the Eurogroup (Mon) and ECOFIN (Tue) meetings will both take place next week, but the problem seems that it is too early to make the most eagerly awaited decisions. However, there may be some clarification on the plans on how to use the European Stability Mechanism (ESM).

In the US, Q3 earnings season to start and market will look for hints of global slowdown hitting the sales of US companies. Alcoa will start late on Tuesday, while bank earnings will be set in motion by JPMorgan Chase and Wells Fargo on Friday.

In Scandinavia, September inflation numbers for Norway are set to stay on the low side compared the forecast by Norges Bank, limiting the pressure for rate hikes. In Sweden, bleak figures from the industry are set to continue, supporting our call of another rate cut from the Riksbank ahead.