Seeking Evidence of the Slowdown

Worries about a global slowdown will keep investors focused on early indicators of stress next week, looking for signs that resilient domestic demand in Europe and the U.S. can sustain growth in spite of emerging markets struggles. Surveys on manufacturing and consumer sentiment on both sides of the Atlantic will offer clues about how much the strain of weak trade, investment and wage growth are spilling into advanced economies. The euro area and the U.S had both been expected to weather the global dip relatively unharmed, but the OECD poured cold water on those hopes this week, when it slashed its GDP forecasts for nearly all the major economies. Germany, Canada and the U.S. saw some of the biggest cuts.