It is not a surprise for anyone that the recent 16-day long partial government shutdown and political disputes will have a devastating effect on the world's largest economy; however, mounting polarization of U.S. politics imperils the long term growth.
Mood amid German businesses was poised for a sixth consecutive monthly increase in October; however, markets were disappointed on Friday, as Ifo business climate index unexpectedly fell due to uncertainty over the strength of recovery in the Eurozone.
There were plenty of economic events with high importance last week that all had significant impact on financial markets; however, markets were highly volatile on Tuesday and Wednesday, when U.S. statistical office unveiled highly anticipated jobless rate and payrolls, while a day later China's money rates shot up as the People's Bank of China withdrew cash from the financial system,
Following a better-than-expected inflation data earlier this month, a report by the Statistics New Zealand showed nation's trade gap shrivelled last month on the back of strong exports that more than doubled, while imports slipped sharply.
Japan's key measure of prices ended four years of declines, signalling success of Prime Minister Shinzo Abe's aggressive fiscal and monetary policy to escape deflation and reflate the world's third biggest economy.
A day after British policymakers said there is no need in additional stimulus measures as economy is building up steam, the latest CBI quarterly Industrial Trends Survey showed optimism among U.K. manufacturers advanced at the fastest rate since April 2010, on the back of strong demand for goods and increased output.
After gaining some strength following a release of weaker-than-expected data from Europe the greenback rose from the two-year low against the single currency; however, disappointing jobless claims and trade figures from the world's largest economy pushed EUR/USD back to 1.382.
After hitting a two-year high of 1.382 on Wednesday, the single currency pulled back, following releases from the Eurozone and its largest economy, Germany, where manufacturing and services data disappointed market participants.
Analysts and market participants pruned back the chances the Reserve Bank of Australia will make another cut to its benchmark interest rate this year, as Australian consumer prices grew more than expected in the September quarter due to a surge in fuel prices.
Canadian policymakers abandoned an 18-month streak of rate-hike talk in a policy shift, saying the economy is facing slower-than-expected growth and risks of persistently weak inflationary pressure.
As it was widely expected BoE policymakers were unanimous during October meeting on both the interest rate and stimulus programme.
Seemingly unaffected by the end of the 16-day U.S. government lockout, the demand for new mortgage remained subdued, while property prices rose slightly, suggesting investors are getting more worried about situation in the world's largest economy and showing unwillingness to invest into property.
Europe is finally gaining momentum. While Germany is still leading the recovery, other major economies are starting to show signs of improvement.
Swiss stocks turned green for a fourth day in a row on Tuesday, extending their highest level since May, while the Swiss Franc is moving further away from the 1.20 cap.
A further sign of broadening economic amelioration in the world's third largest economy is a decision made by the Bank of Japan to raise its assessment of all nine country's regions, after seeing a solid improvement in domestic demand, investment in the housing sector and with signs of improvement in the labour market.
British public sector net borrowing increased less than expected last month, suggesting the pace of government and public corporations spending slowed compared with how much they earn.
A 16-day long government shutdown is likely to cut about 0.6% from the fourth-quarter growth, suggesting the Federal Reserve will not introduce any tapering of its stimulus in the nearest future.
With the Euro trading versus the United States Dollar around this year's high, European exporters may start to suffer from the strong single currency, posing a threat to region's recovery.
After last week's worse-than-expected factory sales that raised concerns over weak August GDP data, wholesale sales report is raising hopes the economy is still on the path of recovery.
USD/JPY moved higher on Monday after disappointing trade figures, while BoJ Governor Kuroda reiterated the world's third largest economy is improving moderately.
Last week Britain's leading economists claimed that even despite risks of a growing housing bubble, the housing market remains highly divergent and two-speed market, as the pace of growth in property price in the capital is several times higher than in other regions.
After a lot of drama last week, and a lack of economic news from the United States, the Federal Reserve is back to the focus.
A bunch of positive data for Europe's largest economy, Germany, came out on Monday, as Angela Merkel and Social Democratic Party moved closer in creation of a "grand coalition", while producer prices inched higher more than expected.
On Friday Statistics Canada published inflation data, saying consumer prices are approaching the bottom of the Bank of Canada target band, due to lower costs for mortgage interest and prescription drugs.