– Chinese equities up even as most other markets fall
– Korean employment up, unemployment unchanged at 3.1%
– Weak Swedish industrial production a risk to SEK
– We expect Brazil to keep policy rates unchanged
What to watch for today
SEK: Weak growth/ inflation mix. Industrial production is expected to decline 0.9% mom, according to our economists. However, we note that the 5.5-point fall in the Swedish PMI in August suggests risk of a sharper contraction in industrial production. The weak growth and inflation mix are likely to support expectations for further easing by the Riksbank at its policy meeting later this month and make SEK vulnerable to loss of rate spread support. We are short SEK versus GBP in our derivatives portfolio.
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Credit Suisse