All eyes will be on US nonfarm payrolls which are due on Friday as US employers are expected to have accelerated hiring in September and the unemployment rate is forecast to stay steady 6.1%, matching the lowest level since 2008. Nonfarm payrolls are expected to rise to 195,000 this month compared to August’s 134,000.
Also from the US, final manufacturing and services PMI releases will be closely watched to gauge how the world’s largest economy is doing. The ISM index on Manufacturing PMI is due on Wednesday while the services PMI is out on Friday.
Another important event will be the European Central Bank policy meeting on Thursday as it will announce its latest monetary policy decision and interest rates. No change is expected to the main rate of 0.05% after it was cut in the last meeting. Markets will look out for any insight into whether the ECB will launch any further stimulus such as full-scale quantitative easing in coming months to help boost the Eurozone economy.
Updates on Eurozone inflation and unemployment numbers are scheduled for next week, both out on Tuesday.
From the United Kingdom there will be a slew of key data releases, which include final GDP data for the second quarter and PMI releases for the construction, manufacturing and services sectors.
The final UK GDP data is due on Tuesday and is expected to be revised up from the current estimate of 0.8%. Manufacturing PMI is out on Wednesday and investors will be eager to see whether the sector picked up again in September after a slowdown in August. Construction PMI is out on Thursday and the more important services PMI on Friday. The service sector is the dominant sector of the UK economy and comprises about 78% of GDP.
From the Asian region, China and Japan will be in focus. On Tuesday the HSBC Manufacturing PMI is released by Markit for China. From Japan, unemployment data, industrial production numbers and retail trade figures are all due next week. On Wednesday the Bank of Japan Tankan survey results are published.