The Week Ahead: Inflation in the US And Europe

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By Greg Peel

US economic data for the week kicks off on Monday with the Empire manufacturing index for October. Tuesday brings September industrial production and capacity, along with the NAHB housing index for October and the August TIC flows (movements in and out of US dollar assets domestically and internationally).

Wednesday brings the all important September CPI. Some economists are concerned the falling US dollar will spark inflation, and if its a strong number the chances of a rate cut are lessened. If its a good number the economy will be under less of a threat, but a rate cut is still a possibility. Wednesday also sees September housing starts and building permits, along with the Fed beige book of economic activity.

Thursday brings September leading indicators and the Philadelphia Fed activity assessment for October, while Friday, for once, is data free.

Tuesday is Europe’s turn for inflation worries, as both the EU and UK September CPI numbers are released.

Australia sees nothing of note until Thursday when the RBA issues one of its regular bulletins. Friday brings third quarter import and export prices and September vehicle sales.

On the corporate front in Australia, the Federal Court will hear about Publishing & Broadcasting’s ((PBL)) demerger plans on Monday, while third quarter production reports start rolling in from the resource sector. Energy Resources of Australia ((ERA)) comes in on Tuesday, followed by Coal & Allied ((CNA)) and Rio Tinto ((RIO)) on Wednesday, and Iluka ((ILU)) and Woodside ((WPL)) on Thursday.

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