Market movers today include the release of US consumer confidence data from the University of Michigan, which includes 5-10 year inflation expectations that have slightly declined in recent months. ECB President Christine Lagarde will also be speaking at the IMF autumn meetings. In the Nordics, the release of Swedish CPI for September is expected, with core inflation projected to fall slightly below consensus. The Riksbank will also release its first report on the two. Other notable news includes the stabilization of oil prices after a recent rise, Chinese headline CPI weakening, but trade data improving, a piece diving into the recent developments in the German labor market, and the upcoming Polish election and its potential impact on the EU and the Polish economy. Equities fell yesterday, mainly driven by US markets, with yields rising and consumer staples and utilities sectors underperforming. US government bond yields rose on the back of the US inflation data, leading to a spill-over effect on European bond markets. EUR/USD moved lower following the surprise in September inflation, and focus turns to the September CPI release for Sweden. Credit markets ended tighter for the day despite somewhat hawkish US inflation data. Inflation statistics are expected to be released in Sweden today, with a decline expected in CPIF and core inflation. Uncertainty remains around food prices and recreation/transportation services. Falling electricity prices are also expected to push the energy component lower. Danish and Norwegian inflation came in lower than expected earlier this week, supporting the forecast for Swedish inflation.
