|China will likely be in focus this week|
However, what markets are really waiting for is Thursday’s ECB meeting when detail on the operating framework for bond market intervention and, generally, for ‘repairing’ the transmission mechanism for effecting ECB monetary policy is to be announced. The Bundesbank has put up much resistance to ECB support for the bond markets, but there is no turning back for Mr. Draghi. The markets will judge Thursday’s delivery as a test of his and the ECB’s resolve to deal credibly with ‘whatever it takes’ to preserve the euro.
China will likely be in focus this week too. More data comes out next week but the official purchasing managers’ survey for manufacturing in August was released this past weekend and came in below 50 for the first time since late last year. More >