Allan von Mehren
Danske Bank A/S
Market Movers
In Europe, focus will be on the minutes of the January ECB meeting. We will look for any indications of what instruments it is considering or prefers after the quite dovish January meeting.
In the UK, focus will be on the EU council meeting which starts today where the draft deal between the EU and the UK is to be discussed.
Scandinavia: Swedish inflation as well as the annual address from Norges Bank. See Scandi markets, page 2.
Finally, in the afternoon, focus will be on the Philly Fed survey as well as initial jobless claims.
Selected Market News
The Central Bank of Mexico unexpectedly raised policy rates by 50bp yesterday to support the Mexican peso.
Yesterday, the Federal Reserve published the minutes from the last FOMC meeting. The minutes were clearly on the dovish side and based on them, it is hard to see another hike at before June at the earliest.
In general, the Fed was not sure how to interpret the developments in the economy and the financial markets since lift-off in December. We continue to believe that the Fed will stay on hold until September due to continued stress in financial markets and the rising risk of a systemic crisis.
The US equity market continued its recovery yesterday as risky assets rallied and US Treasury yields rose.
Equity markets rose across Asia yesterday, benefitting from the positive sentiment.
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