Jens Nærvig Pedersen
Danske Bank A/S
Market Movers
Financial markets will open for the first time since the terrorist attack in Paris on Friday.
ECB’s Constancio, Draghi and Coeure will speak during the day and the market will keep an eye out for signals on monetary policy ahead of the next ECB meeting in December, where we expect the ECB to cut the deposit rate by 10bp and raise monthly bond purchases to EUR75bn.
Selected Market News
Following the terrorist attack in Paris on Friday, the French defence ministry Sunday evening reported that 10 French fighter jets had hit targets in Syria including a command centre of the Islamic State in Raqqa. Both the oil price and gold price have risen 1%, reflecting uncertainty regarding the geopolitical situation in Europe and the Middle East.
On Friday the managing director of the International Monetary Fund (IMF), Christine Lagarde, issued a statement in which she endorses IMF staff findings that the RMB meets the requirements to be a freely usable currency and thus, along with already satisfying the export criterion, meets the criteria to be included in the SDR basket. RMB’s inclusion in the SDR basket will be decided upon by IMF’s executive board on 30 November.
The Japanese economy entered recession in Q3 as GDP fell 0.2% q/q, which was lower than the consensus expectation of a drop of 0.1% q/q, which led companies to reduce inventories and investments. Bank of Japan kept the policy unchanged at its October meeting but is scheduled to meet again on Thursday this week.
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