Markets are still dealing with the aftershock of Kwasi Kwarteng’s September mini-budget as yesterday, the Halifax house price index revealed a year-on-year increase of 8.3%. This slowed from a 9.8% gain in September and points to the slowest pace of growth since this time last year.
The director of Halifax mortgages, Kim Kinnaird said that, “while a post-pandemic slowdown was expected, there’s no doubt the housing market received a significant shock as a result of the mini-budget which saw a sudden acceleration in mortgage rate increases.”
Eurozone retail sales data will be released at 10am. Sales are expected to decrease to -1.5% – If they do, this will point to the fourth consecutive decline in the euro area’s total number of goods sold.
Just before lunch, US markets can expect the NFIB’s business optimism data. In the last data release, the index rose to a four-month high of 92.1. In September, 46% of business owners reported job openings they could not fill, which was three points lower than in August.
The NFIB’s Chief Economist, Bill Dunkelberg said “Inflation and worker shortages continue to be the hardest challenges facing small business owners. Even with these challenges, owners are still seeking opportunities to grow their business in the current period”.
After lunch the big event will be the US midterm elections.
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