After the pyrotechnics of the ECB meeting, we have a deluge of central meetings this week with the Fed taking centre stage. We also get inflation data from a number of countries as well as China releases which are expected to show some improvement from previous readings.
The main event of the week will see the Federal Reserve cut rates once again by 25bp. Higher trade uncertainty and slower global growth have worsened since their July meeting, while the August inflation report surprised higher and probably invigorated more hawkish FOMC members. With a rate cut more or less priced in by the market, the words of Chair Powell and the outcome of the dot plot chart will likely be what determines market reaction.
The Bank of England remains in Brexit limboland with a combination of a tight labour market, trade war uncertainties and slowing global growth. The chances of a 'no-deal' Brexit have receded and Monday's meeting between PM Johnson and EU Commission President Juncker , their first tête-à-tête since Johnson became PM in July, will grab the headlines.
We've seen some positive signs from both sides over the past week in the trade war, ahead of the high-level talks in early October. There will be lower-level preparations for the talks next week, which may lead to some comments from the US and China ahead of the important negotiations in next month.
Here are the key events on the calendar across global markets this week:
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