{"id":25610,"date":"2021-10-06T11:53:58","date_gmt":"2021-10-06T10:53:58","guid":{"rendered":"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/"},"modified":"2021-10-06T11:54:52","modified_gmt":"2021-10-06T10:54:52","slug":"the-week-in-markets-6-october-2021","status":"publish","type":"post","link":"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/","title":{"rendered":"The week in markets – 6 October 2021"},"content":{"rendered":"

Welcome to your weekly macroeconomic round-up, where we spotlight a few of the most significant events in the last week.<\/h3>\n

Eurozone inflation rises to 3.4% in September but monetary tightening remains unlikely<\/strong><\/h3>\n

Eurozone consumer prices rose by 3.4% in the year to September, up from 3.0% a month earlier. The move was largely expected by economists and reflects the ongoing supply-chain disruptions and price pressures that are affecting firms at present. Energy price inflation was also relevant, rising from 15.4% to 17.4%, as a result of the rise in regulated energy prices. However, core inflation \u2013 which adjusts for volatile elements such as energy and food \u2013 rose only slightly, from 1.6% to 1.9% in the year to September.<\/p>\n

Although price pressures are likely to persist and potentially intensify until the end of the year, it is unlikely that the ECB will move to counter rising consumer prices given their expectation that the price pressures currently driving inflation should prove largely transitory. ECB projections are for inflation to return to below the 2% target by the end of 2022.<\/p>\n

UK economy grew faster than originally thought in Q2 thanks to \u2018wall of demand\u2019 from consumers<\/strong><\/h3>\n

The UK\u2019s Q2 GDP growth was revised up from 4.8% to 5.5% as compared to the end of March, thanks to a \u2018wall of demand\u2019 from consumers, which reduced the households\u2019 savings rate by 7%, down to 11.7%. The normal level of household savings is roughly 5%. This brought the UK economy back up to 3.3% below its pre-pandemic level. The upward revisions were made to government consumption, private investment and net exports, while consumer spending remained the largest component of the growth rebound. Looking forward to Q3, it is likely that the rate of growth will slow as most of the rebound in activity has occurred. The ONS estimates that GDP growth in month of July was only 0.1%.<\/p>\n

US manufacturing growth stabilises amid supply chain and labour market concerns <\/strong><\/h3>\n

The ISM manufacturing index, which survey US manufacturing businesses to gauge their current assessment of the growth outlook, came in better than expected for September, rising from 59.9 to 61.1. Expectations were for a further moderation to 59.5. A number above 50 represents improving conditions. Respondents highlighted that demand remained strong but manufacturers are struggling with supply shortages and face an \u201cunprecedented number of hurdles to meet\u201d rising demand.<\/p>\n

Markets <\/strong><\/h3>\n

September was a notably poor month for asset markets as investors grew increasingly nervous about China Evergrande, and worse than expected macroeconomic data and rising prices fed expectations for monetary tightening. Global equity markets (measured by the MSCI ACWI) registered their largest drawdown in the year so far, led by the US. Government bond yields in the US and UK rose significantly over the month, as central bankers seemingly reasserted their commitment to tackle inflation after many months of expressing their view that price rises were transitory.<\/p>\n

The best performing assets in September were linked to the rising price of oil and natural gas, which feeds through into the prospects of energy companies. Meanwhile in Japan, success in the rollout of its COVID-19 vaccination programme saw the \u2018state of emergency\u2019 lifted for the first time since April. This added to growing investor sentiment surrounding the Japanese general election, due to take place at the end of November. The MSCI Japan index rose 5% over the month.<\/p>\n

Look out for next week\u2019s update, where we\u2019ll be focusing on the US jobs report and European retail sales. <\/strong><\/h3>\n
\n

All details in this article are provided for information purposes only and should not be misinterpreted as investment advice or taxation advice.<\/p>\n

Where the data in this article comes partially from third party sources the accuracy, completeness or correctness of the information contained in this publication is not guaranteed, and third-party data is provided without any warranties of any kind.\u00a0 Sarasin & Partners LLP shall have no liability in connection with third party data.<\/p>\n

\u00a9 2021 Sarasin & Partners LLP \u2013 all rights reserved.\u00a0 This article can only be distributed or reproduced with permission from Sarasin & Partners LLP. Please contact marketing@sarasin.co.uk.<\/p>\n","protected":false},"excerpt":{"rendered":"

Welcome to your weekly macroeconomic round-up, where we spotlight a few of the most significant events in the last week. Eurozone inflation rises to 3.4% in September but monetary tightening remains unlikely Eurozone consumer prices rose by 3.4% in the year to September, up from 3.0% a month earlier. The move was largely expected by...<\/p>\n","protected":false},"author":62,"featured_media":11430,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[],"coauthors":[182],"class_list":["post-25610","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets"],"yoast_head":"\nThe week in markets - 6 October 2021 - Sarasin & Partners Ireland<\/title>\n<meta name=\"description\" content=\"The week in markets: Eurozone inflation rises to 3.4% in September but monetary tightening remains unlikely.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The week in markets - 6 October 2021 - Sarasin & Partners Ireland\" \/>\n<meta property=\"og:description\" content=\"The week in markets: Eurozone inflation rises to 3.4% in September but monetary tightening remains unlikely.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/\" \/>\n<meta property=\"og:site_name\" content=\"Sarasin & Partners Ireland\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-06T10:53:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-10-06T10:54:52+00:00\" \/>\n<meta name=\"author\" content=\"Tom Kynge\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@sarasinpartners\" \/>\n<meta name=\"twitter:site\" content=\"@sarasinpartners\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tom Kynge\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/think\\\/the-week-in-markets-6-october-2021\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/think\\\/the-week-in-markets-6-october-2021\\\/\"},\"author\":{\"name\":\"Tom Kynge\",\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/#\\\/schema\\\/person\\\/73f878380f7878b8047f790b2c8b5697\"},\"headline\":\"The week in markets – 6 October 2021\",\"datePublished\":\"2021-10-06T10:53:58+00:00\",\"dateModified\":\"2021-10-06T10:54:52+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/think\\\/the-week-in-markets-6-october-2021\\\/\"},\"wordCount\":669,\"publisher\":{\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/think\\\/the-week-in-markets-6-october-2021\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/wp-content\\\/uploads\\\/2021\\\/04\\\/JGEM_HRQ2.jpg\",\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/think\\\/the-week-in-markets-6-october-2021\\\/\",\"url\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/think\\\/the-week-in-markets-6-october-2021\\\/\",\"name\":\"The week in markets - 6 October 2021 - Sarasin & Partners Ireland\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/think\\\/the-week-in-markets-6-october-2021\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/think\\\/the-week-in-markets-6-october-2021\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/wp-content\\\/uploads\\\/2021\\\/04\\\/JGEM_HRQ2.jpg\",\"datePublished\":\"2021-10-06T10:53:58+00:00\",\"dateModified\":\"2021-10-06T10:54:52+00:00\",\"description\":\"The week in markets: Eurozone inflation rises to 3.4% in September but monetary tightening remains unlikely.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/think\\\/the-week-in-markets-6-october-2021\\\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/think\\\/the-week-in-markets-6-october-2021\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/think\\\/the-week-in-markets-6-october-2021\\\/#primaryimage\",\"url\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/wp-content\\\/uploads\\\/2021\\\/04\\\/JGEM_HRQ2.jpg\",\"contentUrl\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/wp-content\\\/uploads\\\/2021\\\/04\\\/JGEM_HRQ2.jpg\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/think\\\/the-week-in-markets-6-october-2021\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The week in markets – 6 October 2021\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/#website\",\"url\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/\",\"name\":\"Sarasin & Partners Ireland\",\"description\":\"Sarasin & Partners\",\"publisher\":{\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/#organization\",\"name\":\"Sarasin & Partners Ireland\",\"url\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/wp-content\\\/uploads\\\/2019\\\/12\\\/sarasinandpartners.svg\",\"contentUrl\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/wp-content\\\/uploads\\\/2019\\\/12\\\/sarasinandpartners.svg\",\"width\":532,\"height\":197,\"caption\":\"Sarasin & Partners Ireland\"},\"image\":{\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/x.com\\\/sarasinpartners\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/sarasin-&amp;-partners\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/sarasinandpartners.com\\\/ie\\\/#\\\/schema\\\/person\\\/73f878380f7878b8047f790b2c8b5697\",\"name\":\"Tom Kynge\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The week in markets - 6 October 2021 - Sarasin & Partners Ireland","description":"The week in markets: Eurozone inflation rises to 3.4% in September but monetary tightening remains unlikely.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/","og_locale":"en_GB","og_type":"article","og_title":"The week in markets - 6 October 2021 - Sarasin & Partners Ireland","og_description":"The week in markets: Eurozone inflation rises to 3.4% in September but monetary tightening remains unlikely.","og_url":"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/","og_site_name":"Sarasin & Partners Ireland","article_published_time":"2021-10-06T10:53:58+00:00","article_modified_time":"2021-10-06T10:54:52+00:00","author":"Tom Kynge","twitter_card":"summary_large_image","twitter_creator":"@sarasinpartners","twitter_site":"@sarasinpartners","twitter_misc":{"Written by":"Tom Kynge","Estimated reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/#article","isPartOf":{"@id":"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/"},"author":{"name":"Tom Kynge","@id":"https:\/\/sarasinandpartners.com\/ie\/#\/schema\/person\/73f878380f7878b8047f790b2c8b5697"},"headline":"The week in markets – 6 October 2021","datePublished":"2021-10-06T10:53:58+00:00","dateModified":"2021-10-06T10:54:52+00:00","mainEntityOfPage":{"@id":"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/"},"wordCount":669,"publisher":{"@id":"https:\/\/sarasinandpartners.com\/ie\/#organization"},"image":{"@id":"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/#primaryimage"},"thumbnailUrl":"https:\/\/sarasinandpartners.com\/ie\/wp-content\/uploads\/2021\/04\/JGEM_HRQ2.jpg","articleSection":["Markets"],"inLanguage":"en-GB"},{"@type":"WebPage","@id":"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/","url":"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/","name":"The week in markets - 6 October 2021 - Sarasin & Partners Ireland","isPartOf":{"@id":"https:\/\/sarasinandpartners.com\/ie\/#website"},"primaryImageOfPage":{"@id":"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/#primaryimage"},"image":{"@id":"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/#primaryimage"},"thumbnailUrl":"https:\/\/sarasinandpartners.com\/ie\/wp-content\/uploads\/2021\/04\/JGEM_HRQ2.jpg","datePublished":"2021-10-06T10:53:58+00:00","dateModified":"2021-10-06T10:54:52+00:00","description":"The week in markets: Eurozone inflation rises to 3.4% in September but monetary tightening remains unlikely.","breadcrumb":{"@id":"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/#primaryimage","url":"https:\/\/sarasinandpartners.com\/ie\/wp-content\/uploads\/2021\/04\/JGEM_HRQ2.jpg","contentUrl":"https:\/\/sarasinandpartners.com\/ie\/wp-content\/uploads\/2021\/04\/JGEM_HRQ2.jpg"},{"@type":"BreadcrumbList","@id":"https:\/\/sarasinandpartners.com\/ie\/think\/the-week-in-markets-6-october-2021\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/sarasinandpartners.com\/ie\/"},{"@type":"ListItem","position":2,"name":"The week in markets – 6 October 2021"}]},{"@type":"WebSite","@id":"https:\/\/sarasinandpartners.com\/ie\/#website","url":"https:\/\/sarasinandpartners.com\/ie\/","name":"Sarasin & Partners Ireland","description":"Sarasin & Partners","publisher":{"@id":"https:\/\/sarasinandpartners.com\/ie\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/sarasinandpartners.com\/ie\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/sarasinandpartners.com\/ie\/#organization","name":"Sarasin & Partners Ireland","url":"https:\/\/sarasinandpartners.com\/ie\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/sarasinandpartners.com\/ie\/#\/schema\/logo\/image\/","url":"https:\/\/sarasinandpartners.com\/ie\/wp-content\/uploads\/2019\/12\/sarasinandpartners.svg","contentUrl":"https:\/\/sarasinandpartners.com\/ie\/wp-content\/uploads\/2019\/12\/sarasinandpartners.svg","width":532,"height":197,"caption":"Sarasin & Partners Ireland"},"image":{"@id":"https:\/\/sarasinandpartners.com\/ie\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/x.com\/sarasinpartners","https:\/\/www.linkedin.com\/company\/sarasin-&amp;-partners"]},{"@type":"Person","@id":"https:\/\/sarasinandpartners.com\/ie\/#\/schema\/person\/73f878380f7878b8047f790b2c8b5697","name":"Tom Kynge"}]}},"_links":{"self":[{"href":"https:\/\/sarasinandpartners.com\/ie\/wp-json\/wp\/v2\/posts\/25610","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sarasinandpartners.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sarasinandpartners.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sarasinandpartners.com\/ie\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/sarasinandpartners.com\/ie\/wp-json\/wp\/v2\/comments?post=25610"}],"version-history":[{"count":0,"href":"https:\/\/sarasinandpartners.com\/ie\/wp-json\/wp\/v2\/posts\/25610\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sarasinandpartners.com\/ie\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/sarasinandpartners.com\/ie\/wp-json\/wp\/v2\/media?parent=25610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sarasinandpartners.com\/ie\/wp-json\/wp\/v2\/categories?post=25610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sarasinandpartners.com\/ie\/wp-json\/wp\/v2\/tags?post=25610"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/sarasinandpartners.com\/ie\/wp-json\/wp\/v2\/coauthors?post=25610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}