This week's calendar is full of economic data, though political
events in Washington will likely be the main catalyst.
The United States faces the prospect of a government shutdown
tomorrow morning because the Senate is refusing to pass a
House-approved budget. House Republicans are trying to use the
budget to delay implementation of the Obamacare health law,
galvanizing Democratic opposition. At this point a shutdown appears
likely, which will almost certainly hurt sentiment. News reports
that the situation will end or be extended could trigger buying and
selling in the market.
In addition to politics, this week is one of the busiest of the
month for important economic data. It begins with Chinese and
Japanese manufacturing reports late Sunday night. The Australian
central bank follows with its monetary announcement shortly after
midnight, which is often viewed as a window into the Chinese
economy. Commodity and materials stocks could be especially
The only data release in the United States is the Chicago
Purchasing Managers Index at 9:45 a.m. ET. Economists expect a
reading of 53.7, up from 53 in August. More Chinese manufacturing
numbers follow in the evening.
Tomorrow brings European manufacturing data and the Institute for
Supply Management's key index of U.S. manufacturing activity.
Construction spending will also be released.
Wednesday features the European Central Bank's interest-rate
decision, followed by ADP's private-sector payrolls report for the
United States. Oil inventories follow and the Bank of Japan
announces monetary policy in the evening.
Thursday brings initial jobless claims, factory orders and ISM's
non-manufacturing index. The agenda climaxes Friday morning with
non-farm payrolls, typically the most important economic release of
In addition to the economic and political events, companies could
preannounce results because as the third quarter ends. Earnings
season will gain momentum in coming weeks.
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