Markets Await Remarks From BoJ's Kuroda And ECB's Draghi

The avalanche of data awaiting the markets on Thursday will itself be momentous. Japanese August machine orders, weekly portfolio flows volumes, and September bank lending numbers will kick off the onslaught after some remarks from European Central Bank President Draghi in Boston.

Australian October consumer inflation expectations will precede a deluge of Chinese data for September including foreign reserves, new CNY loans and money supply numbers. In theory, we’ll see how well the Chinese economy held up at the conclusion of Q3 and try to handicap final 2013 economic growth projections for that country. Australian September employment and labour market data follow and are critical given last week’s reassessment of the likely timing of RBA easing. ECB will publish its monthly report and Bank of England will announce its Monetary Policy decision with no change in policy anticipated.

Canadian August housing market numbers will be released, and it is looking increasingly unlikely that weekly US jobless claims data will be released that day, even though they are compiled at the state level.

Economic data aside, what really matters on Thursday are major remarks from BoJ Governor Kuroda and ECB President Draghi. Kuroda is scheduled to speak first at the Council on Foreign Relations in New York and will speak later in the day at the Bretton Woods Committee’s 2013 International Council meeting. Other global industry titans will be there and policymakers will “explore the road to global financial stability,” deliberating “whether the actions and incentives driving monetary and fiscal policies, regulatory reforms, and financial market participants are sufficiently aligned to sustain global growth.” Governor Tarullo will represent the Fed at the meeting, an indication that regulatory reforms will be highlighted.

Shortly after Kuroda concludes his remarks, ECB President Draghi will speak for the second time in 24 hours, this time at the Economic Club of New York. Fed Governor Tarullo later speaks about regulatory reform and ECB’s Asmussen participates in a panel called “The End of the Crisis – A Euro Vision?” in Washington, D.C.

The confluence of monetary policy giants in the US this week will not go unnoticed by the markets, and anytime a major name speaks at an event sponsored by an organisation called “Bretton Woods,” market participants ought to remain doubly attuned to the monetary landscape.