Introduction
Looking ahead to the week beginning September 23rd the major event of the week is the United Nations General Assembly – or UNGA which could be a pivotal moment for Brexit but as far as wider markets, we think the week will most likely be framed as an aftermath of the unusual price moves in oil and repo markets last week. That said, we will still run down the key economic data releases for the week.
Markets backdrop
Oil has seen the biggest changes – with its biggest intraday swing since Brent crude oil futures first began trading thanks to the drone strike in Saudi Arabia. Short term money markets were out of whack – with a big spike in repo rates thanks to a shortfall in funding. Stock markets haven’t been perturbed by the gyrations in oil or repos though – with US indices sitting just below record highs. The dollar is little changed after the Fed’s well-telegraphed rate hike and the British pound has been drifting lower with the rising chances of a renegotiated Brexit deal.