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Jens Peter Sørensen
Danske Bank A/S
Market Movers
The main event this week is the G20 meeting in Shanghai. We expect a string of US economic data releases during the week and we kick off with the Manufacturing PMI today.
There is also plenty of data from the eurozone and we start the week with eurozone PMI as well as German and French PMI and Italian inflation data.
The next Irish general election will take place on Friday. The coalition government continues to slide in the polls and is likely to lose its absolute majority.
Minutes from the Riksbank meeting on 10 February and Danish retail sales are due today, see Scandi Markets.
Selected Market News
Negative rating event on Spain as Moody’s moved from a positive outlook to a stable outlook for Spanish government bonds. Hence, the expected upgrade back to single-A is likely to be postponed despite the solid growth outlook for the Spanish economy.
The UK and the EU signed a deal on Friday and afterwards PM David Cameron announced a date for the referendum on UK’s EU membership (23 June). Currently, the ‘Remain’-side is ahead of the ‘Leave’-side but there is a large number of undecided voters. During the weekend a number of prominent conservatives including London Mayor B. Johnson supported the ‘Leave’-side. This is putting pressure on the GBP this morning and there is plenty of risk ahead for the GBP, see FX comment on page 2.
The Asian stock markets opened higher this morning as the yen weakened and the oil price rose. Hence, the sentiment in the market is a bit more positive this morning despite HSBC reporting a surprising loss for Q4.
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