The main event is the release of the FOMC minutes from the 17-18 June meeting

Market movers today

• The main event is the release of the FOMC minutes from the 17-18 June meeting, when policy makers trimmed the bond purchase programme by USD10bn for the fifth consecutive gathering. The statement from the meeting was judged as relatively dovish, albeit the projection for the leading Fed funds rate was revised slightly higher. In particular, Janet Yellen downplayed the recent increase in inflation at the press briefing and it will be interesting to see whether this view is broadly shared by other FOMC members.

• A couple of speeches from ECB members today: Peter Praet speaks in Paris this morning and ECB President Mario Draghi speaks in London tonight.

Selected market news

• Investors’ appetite for risk assets eased further and following the third consecutive day with losses on European bourses, US equities and rates also declined yesterday. The S&P500 and the Down Jones Industrial indices ended the day 0.7% lower, while yields on 10-year US treasuries dropped the most in nearly three weeks to 2.557%.

• The negative sentiment has also been carried over to the Asian session, where all regional equity indices trade in negative territory this morning.

• Data released overnight showed that Chinese consumer inflation eased more than expected in June, while producer prices declined at the slowest pace in more than two years adding to signs of a stabilisation in the Chinese economy. Consumer prices rose 2.3% y/y in June (consensus 2.4%, Danske Bank 2.5%) after gaining 2.5% in May. Inflation has moved higher in recent months mainly on the back of higher food price inflation, as the seasonal decline in food prices during the spring and early summer has been less than usual. However, food price inflation eased in June, rising 3.7% y/y compared to 4.1% y/y in May, while consumer prices excluding food and energy remained unchanged at 1.7% y/y in June.

Scandi markets

• Prospera publishes Swedish money market's inflation expectations. Inflation is indeed a theme in Sweden following the unexpectedly big rate cut by the Riksbank last week. However, most of the survey data have probably been collected prior to Riksbank’s very dovish actions and thus the survey will most likely not show the impact (if any) of the Riksbank’s dovishness on inflation expectations.

• Statistics Denmark will release balance of payments data for May. We expect the current account surplus to have climbed to DKK12bn from DKK9.1bn in April, with exports excluding ships and aircraft growing 3% m/m, helping lift the trade surplus from DKK5.3bn to DKK8.4bn.