UK mortgage approvals increased to 74,300 for September from 63,800 the previous month and well above consensus forecasts of 62,000. Overall mortgage lending also increased to £6.1bn from £5.1bn the previous month and there was a further increase in consumer credit growth of over £1.0bn with annual growth matching the strongest rate since 2005. There were still concerns that consumer credit growth was due to distresses spending amid energy and food costs. Following a meeting between Prime Minister Truss and the office of Budget Responsibility it was stated that the OBR government borrowing figures would be supplied to the government on October 7th, but the estimates would not be made public until November 23rd. The delay in public presentation triggered fresh Sterling selling amid on-going fears surrounding credibility and the threat to international confidence. CFTC data recorded a net decline in short, non-commercial Sterling positions to below 46,500 contracts in the latest week from just below 55,000 the previous week. After Friday’s close, S&P cut the AA UK credit rating outlook to negative from stable which reinforced negative sentiment. Sterling dipped against the dollar on Monday but then recovered following confirmation of a U-turn on the planned cut in the higher rate of tax from 45p.
No Key Data
German unemployment increased by 14,000 for September following a 26,000 increase the previous month, although a slightly lower than expected increase for the month. Euro-Zone consumer inflation increased to a fresh record high of 10.0% for September from 9.1% previously and above consensus forecasts of 9.7%. The underlying rate also increased to a record high of 4.8% from 4.3% and above expectations of 4.7%. The data failed to provide further Euro support.
No Key Data
The US core PCE prices index increased 0.6% for August after a 0.1% the previous month with the year-on-year rate increasing to 4.9% from 4.7% and above expectations of being unchanged at 4.7%. The data reinforced concerns that inflation would prove to be persistent. The US core PCE prices index increased 0.6% for August after a 0.1% the previous month with the year-on-year rate increasing to 4.9% from 4.7% and above expectations of being unchanged at 4.7%. The data reinforced concerns that inflation would prove to be persistent.
Key Data
15.00 ISM Manufacturing PMI (Sep) Exp. 52.3 Prev. 52.8