Putin thinks about marching on Kiev?

Ukrainian conflict escalation weighed heavily on markets, pushing stock prices down during Asian session. It turns out that separatists opened a new front all of a sudden – what was perceived as Russian aggression,. The European Union and the United States think about another sanction, while Putin probably thinks about marching on Kiev.

ECB is worried about EMU economy

Meanwhile, ECB is worried about the euro zone economy. We are all very worried, with Ewald Nowotny on the front. American model, where good-natured president signs and FED prints did not enter Europe yet, but analysts have speculated on this topic. Especially, when we are approaching ECB meeting in the next week. Citi forecasts, that interest rates will remain at the current levels, while Mario Draghi’s press conference has to  – according to the bank –  take a stage for the QE announcement at the end of the year or next year beginning.

Today calendar is very tight. Europe publish lots of readings till noon:

  • German retail sales disappointed. In German prices, production and consumption (-1.4%) are falling.
  • Unemployment data – unemployment rate in the EMU declined in recent months from 12% to 11.5%. We have to note that seasonal factors may be responsible for it.
  • CPI inflation – which is still falling and analysts predict a further decline from 0.4% to 0.3% (annualized).
How will personal expenses indicator look like?

In the afternoon we will focus on the other side of the pool and take a closer look at USA readings:

  • Inflation and personal expenditures (PCE) – the results in the personal expenses area worsened in recent times and these are CPI good predictors. Weak income growth and personal expenses are putting small inflationary pressure.
  • Michigan University consumer sentiment – indicator may show that the moods are maintained at current levels, as was the case with the Conference Board results.
  • GDP of Canada (monthly basis) – it should slow it growth rate from 0.4% in June to 0.2% in July, which is still a robust result in the case of well-developed country.
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