Markets are still concentrating on China

The UK’s October money supply and bank lending data will show how the recent increases in interest rates have affected the economy. Given that the data covers the time period immediately following the mini-Budget, when mortgage rates were at their most recent peak, a decline in mortgage approvals and secured lending in particular seems likely.

Both the manufacturing and service sectors in the Eurozone have experienced sharp declines in business confidence this year, and in October, the European Commission measures reached new 2022 lows. It is anticipated that they will have remained near those lows in November, but the recent slowdown in energy price inflation increases the likelihood that the energy-intensive manufacturing sector will experience a modest uptick.

Additionally in the Eurozone, November CPI data for Spain and Germany could offer clues about tomorrow’s inflation outcome for the entire Eurozone.

In the meantime, September’s housing price indices are anticipated to show a decline, reflecting the recent downturn in the housing market.

Markets will be interested to hear what Bailey has to say about this today because BoE policymakers have so far been quiet about whether the recent budget will have had any real impact on the BoE’s plans for interest rates.

It decreased, albeit slightly, in October for the fourth time in the previous five months.