Geopolitical developments around Russia and Turkey amongst market movers – Danske Bank

Analysts at Danske Bank suggest that with another quiet day on the economic data front, the market will focus on geopolitical developments around Russia and Turkey, where the US has adopted new sanctions.

Key Quotes

“On the data front, the main interest is on the US PPI headline and core numbers for July, which are assumed to remain modest at the same levels as in the previous month. The core PPI rate will then be running at 2.8% y/y. The rate has been increasing as the cost of services has been rising. The initial jobless claims will also be released.”

“Financial markets will also be watching the Russian reaction to yesterday's US sanctions, which were imposed due to the possible Russian involvement in the nerve gas attack on two Russians in the UK in March this year. Also yesterday, the Russian media leaked a proposal by US Congress for a new round of US sanctions against Russia in relation to claims of Russian interference with the 2016 elections.”

“In relation to Turkey, the meeting between the Turkish delegation and US government officials in Washington will be followed very closely given the possible impact on Turkish financial markets.”