99746 U.S. consumer confidence drops sharply in September Financial Markets Oil prices extended their weekly decline on Friday after Wall Street’s most influential voice in oil trading, Goldman Sachs Group Inc., cut its price forecasts, citing a global supply glut and concerns about China’s economy. Brent, the global benchmark, fell 2.6 percent (or $1.27) to $47.62 a barrel, extending its weekly decline to 3.9 percent, while West Texas Intermediate (WTI), the U.S. benchmark, lost 3.2 percent (or $1.48) to $44.44 a barrel, down 3.4 percent this week. U.S. Treasuries advanced after a poor reading on consumer sentiment boosted investor demand for safe-have assets. The yield on the 10-year benchmark Treasury note fell 4 basis points (bps) to 2.18 percent, and the 2-year note yield slid 2 bps to 0.72 percent. Although yields on Treasuries are moving lower Friday, they are still higher than a week ago as traders are awaiting Federal Reserve’s decision on interest rate. High Income Economies U.S. consumer confidence slipped much more than anticipated in September. The consumer sentiment index produced by the University of Michigan fell from 91.9 in August to 85.7 in September, the lowest in a year. While consumer spending remains strong, there are growing concerns about volatility in equity markets, ahead of a possible interest rate hike. The Central Bank of Russia left policy interest rates unchanged at 11 percent. Since the emergency hike to 17 percent in December 2014 to protect the ruble, the authorities have been progressively lowering rates. While the economy registered a sharp contraction in Q2, the ruble is under pressure and inflation is high, limiting the scope for further cuts in policy rates. August consumer price inflation in Germany was 0.2 percent (y/y) in August, and zero (m/m), meeting expectations and helping lift the euro against major currencies. Developing Economies East Asia and Pacific Malaysia's central bank, Bank Negara, left its key overnight policy rate unchanged at 3.25 percent as expected by economists. The bank said the current stance of monetary policy remains accommodative and supportive of economic activity. Latin American and the Caribbean Consumer prices in Brazil increased 9.53 percent (y/y) in August, slowing slightly from a 9.56 percent rise in July. The monthly inflation rate eased for the second straight month to 0.22 percent, the lowest since July 2014. South Asia On strong increases in manufacturing and electricity output, India's industrial production rose 4.2 percent in July (y/y), higher than the economists’ expected increase of 3.6 percent. The growth rate for June was revised to 4.4 percent from 3.8 percent. Sub-Saharan Africa According to the IMF, Kenya’s shilling will probably remain under pressure as capital inflows slow. The shilling has fallen 14 percent against the dollar this year as earnings from tourism and agriculture slumped and investors offloaded riskier, emerging-market assets in anticipation of a U.S. interest-rate increase September 11, 2015 The Global Daily is an informal briefing on global economic and financial developments compiled by the World Bank’s Development Economics Prospects Group. Recent issues, together with analysis of a variety of macroeconomic topics covered by the Group, may be found at: http://www.worldbank.org/prospects. The views expressed in the Global Daily do not necessarily reflect those of The World Bank Group, its Board of Executive Directors, or the governments they represent. Feedback and requests to be added to or dropped from the distribution list may be sent to: Eung Ju Kim (ekim@worldbank.org).