Market movers ahead
Negotiations on the US fiscal cliff continue.
Euro Flash PMI and German ifo expected to show small improvement.
We look for a further rise in Chinese HSBC Flash PMI.
The Bank of Japan is not expected to add stimulus at next week’s meeting.
Q3 GDP growth in Norway is likely to have seen a deceleration to 0.5% q/q.
Political events took centre stage with fiscal cliff talks in the US, negotiations on Greek debt relief in Europe and the change in the Chinese leadership.
Uncertainty is weighing on financial markets giving a further set back in risk assets.
US data was more mixed this week. It is likely distortions from Hurricane Sandy played a role but uncertainty over the fiscal cliff could also be in play.
GDP in the euro area fell slightly in Q3 and, in our view, is likely to decline further in Q4.