Monday 26 September 2016

After the frenzy of Budget 2016, focus turns to manufacturing

Published 19/10/2015 | 02:30

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ECB President Mario Draghi is set to reveal further monetary easing

With Budget 2016 out of the way, the focus turns back to economic releases and corporate events.

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It’s a quiet week on the economics front.

One of the most important data sets coming up is the publication of manufacturing output prices for September, which will be released on Thursday.

As with August, wholesale prices are likely to be down in the month but up in the year, predicts Merrion Stockbrokers’ chief economist Alan McQuaid. A rise of at least 5pc in manufacturing prices is on the cards for 2015, McQuaid says, with the performance of the euro an important factor.

Looking beyond Ireland, US housing stocks could be in for a boost if September data due out next week confirms strength that market watchers expect.

Home buyers returned from summer vacations to lower mortgage rates and increasing rents, and may have moved back into the market after staying away in August. Shares in the sector fell in mid-to-late September after August data missed expectations.

The NAHB (National Association of Homebuilders) housing market index measuring seller sentiment is due out Monday, to be followed during the week by data that includes building permits and housing starts, mortgages, and home prices and sales.

On Thursday the European Central Bank will reveal its decision on the prospect of more quantitative easing. President Mario Draghi is expected to signal further monetary easing at the central bank’s meeting in Malta, said Credit Suisse, the top major currency forecaster for the four quarters ended June 30, based on Bloomberg rankings.

But implied price swings on futures for 10-year German bunds fell to a two-month low last Friday, suggesting investors are showing caution by sitting on the sidelines of the market before the bank’s decision.

If there are people out there who think Draghi “will provide a clear hint” on extending QE, “they will be disappointed,” said Martin van Vliet, ING Groep NV’s senior interest-rate strategist in Amsterdam.

The week ahead

Monday

CPL Resources AGM

Tuesday

Panalpina Q3 results

Wednesday

IBEC HR Leadership Summit

Thursday

FBD Holdings EGM

Ryanair EGM

Ladbrokes interim management statement

William Hill – ex-dividend – interim dividend rate

CEO Forum 2015

Friday

William Hill Q3 results

Irish Independent

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