US stock markets recorded another strong session, supported by economic data and expected US tax reform. During the week, all three US indices conquered new highs, as optimism spread among European markets.
Unfortunately, the referendum in Catalonia had its effect, with the Spanish stock market in red and the euro being under pressure.
The private sector in the US added 135 thousand jobs in September, according to the regular monthly report of the ADP company. The figures largely justify the expectations of economists for about 140 thousand new positions.
Retail sales in the euro area are shrinking by 0.5% on a monthly basis in August, which pressed down shares of retailers. The concerns are that we are seeing this decline for the second consecutive month.
The mixed signals from the English economy continue. The construction sector in the UK shrank in September for the first time in over one year, with Brexit heavy investment in the construction of business properties. On the other hand, the services sector in Britain is expanding at a faster pace than expected in September. The data bring some comfort to the UK economy and support the argument for raising interest rates by the Bank of England (ACB). All three PMI indexes for services, industry and construction show that the economy is about to record another weak expansion within 0.3% in the third quarter.
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