What you need to know before the open – 30/9
If you thought things might look a little less bumpy for the markets this week – not so. Today, they look set to be battered by US and Italian politics, with the FTSE expected to open sharply lower and Asian markets closing down on concerns.
Opening calls #FTSE100 is expected to open 63 points lower at 6,450, #DAX 60 points lower at 8,602, #CAC40 29 points lower at 4,158
— Michael Hewson (@michaelhewson) September 30, 2013
Silvio Berlusconi's decision over the weekend to pull his five ministers out of the government has rendered Europe's third largest economy even shakier, jeopardising the already tense coalition agreement.
Major developments hit markets on the weekend with the US poised for a government shutdown and Italy's government on the brink of collapse.
— Vesta Capital, LLC (@VestaCapitalLLC) September 30, 2013
The US economy continues to be delicate, with government shutdown looking likely after both parties dug their heels on Friday over a short term budget. The raising of the debt ceiling by mid October will be the next stumbling block for markets and the latest employment report, due out of Friday, may well be affected by government shutdown.
Monday:
- UK mortgage approvals and net lending to individuals for August at 9.30
- EU consumer price index for September, year-on-year, at 10.00. Expected at 1.2 per cent, down from 1.3 per cent.
- Italian consumer price index for September at 10.00. Expected at -0.1 per cent, down from 0.4 per cent.
- US Chicago purchasing managers' index for September at 14.45. Expected at 54, up from 53.