Fed minutes, RBA rate decision, services PMIs, tesco H1 numbers, UK data

1) Global Services PMIs (Sep) – 05/10 – after the slowdown seen in Q2, the manufacturing sector has managed to hold up reasonably well. The recovery in the services sector has been another story with the recent flash PMIs in Germany and France slipping back into contraction territory. This is an increasing concern, particularly for the weaker countries like Italy and Spain who tried to boost economic activity by way of tourism in the summer months, and who now appear to be paying the price for that with increased infection rates, with Spain especially having to impose new stringent lockdowns. The additional imposition of quarantines and other travel restrictions in the last two months is likely to see further economic deterioration in September. In August Spain and Italy saw contractions of 47.7 and 47.1, and it’s unlikely that September will be much better, at a time when France services PMI

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