Bullish Services PMI gains capped by May speech
- AUD - RBA Rate Statement
- GBP - Construction PMI
- USD - FOMC Member Powell Speaks
Theresa May delivered the closing remarks at the Conservative party conference to speak about building a country that works for everyone. The speech told the party to ‘shape up’ and ‘go forward together’ whilst also announcing her plans for a significant expansion in council housing. May plans to invest 2 billion in affordable housing in a bid to help fix the broken housing market. The UK Prime Minister also spoke about Brexit, and mentioned although the government wants a continuing "partnership" with the EU, they will "prepare for every eventuality", a hint that a "no deal" scenario is a possibility.
- GBP - Services PMI
- USD - ISM Non-Manufacturing PMI
- EUR - ECB President Draghi Speaks
The UK Services PMI posted better than expected this morning, registering at 53.6. The figure appreciated slightly from an 11 month low in August. The survey showed reports of healthy labour market conditions and resilient consumer spending, but these were counteracted with reports of worries about the business outlook. The Pound bounced back slightly on the reading, however it was not enough to make much of an impact as the markets dwelled on Theresa May’s speech.
Later today, ECB President, Mario Draghi is set to deliver the opening remarks at the Inauguration of the ECB visitor Centre. The focus switches to the US with the release of the ADP Non-Farm Employment Change figure and ISM Non-Manufacturing PMI. The Employment Change has been expected to post a lower 151k compared to last month’s 237k, due to the natural disasters which hit the Southern East coast of the United States last month. In the evening, Fed Chair, Janet Yellen will be delivering the opening remarks at a community banking conference, also released on Wednesday is the weekly Crude Oil Inventories figure.