This week

Europe

In Europe, events in Catalonia at the start of the week might overshadow CPI readings from Spain, France, Italy and Germany at the end of the week. Monday will also see the start of the fifth round of negotiations between the UK and the European Union, with Brussels's chief Brexit negotiator Michel Barnier set to determine whether "sufficient progress" has been achieved before the 19 October EU summit.

United Kingdom

In the United Kingdom, industrial production will be monitored in view of signs of a weaker pound helping to boost the manufacturing and trade balance. However, the UK may disappoint in construction data as the PMI signalled a renewed downturn of the Sector in September. Meanwhile, half-year results from Sky and full-year numbers from WH Smith are important for UK investors.

United States

The US will be eagerly waiting for clues as to whether Hurricane Harvey and Irma had dented consumption trends. While PMI surveys indicated that the US economy showed encouraging figures, the date may suggest otherwise with growth just above 2% in the third quarter. US earnings season begins in earnest this week, with banks and asset management in the spotlight as third quarter earnings season will begin with the financial sector starting the proceedings. Earnings from BlackRock are expected on Tuesday, while JP Morgan and Citi will report earnings on Thursday, and Bank of America, Wells Fargo and PNC Financial will report earnings on Friday.

China

In China, analysts will be eyeing fresh economic data on return from the Golden Week holiday, to assess the health of the economy in September. Updated China Services PMI will provides clues as how the economy fared at the end of the third quarter. Some data earlier indicated that Chinese manufacturing improved but at a weaker rate in September. Notably, new exports sales increased the least.

Catalonian Independence

Puigdemont, the leader of Catalonia's secessionist movement, vowed to declare independence from Spain within a matter of days. The standoff between Madrid and Barcelona has plunged Spain into its most serious political crisis in four decades, since the country transitioned to democracy. Spanish Prime Minister Mariano Rajoy declared on Saturday to use every tool within the law to stop any meaningful declaration of independence, including a never-before-used clause in the Spanish Constitution, to suspend Catalonia's autonomy.