Global financial markets digested the verdict from the ECB meeting on Thursday
Market movers today
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Today, we have a very thin calendar with no major economic data releases.
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In Scandinavia, focus turns to CPI data in Denmark. See more on the next page.
Selected market news
On Friday, global financial markets digested the verdict from the ECB meeting on Thursday. On the data front in the US, we got the preliminary consumer confidence index for December from the University of Michigan, which rose to 98.0 from 93.8. This is the highest level since January 2015 and the very high consumer confidence supports our view that private consumption will continue to be a main growth driver in the US.
In the US, this week’s main event is the FOMC meeting on Wednesday. Stronger growth in H2 supports our view that the Fed will raise the target range by 25 basis points to 0.50-0.75% (in line with consensus and market pricing). All eyes will be on indicators for next year’s hiking path.
Non OPEC oil producers this weekend agreed to cut output by 558kb/d with Russia delivering 300kb/d. This was about as expected. It is still uncertain what the reference point for Russia's cut will be and most of the remaining cut will come in the form of a natural decline. Hence, the market impact should be limited by the weak details. Saudi Arabia pledged to cut further than the 458kb/d agreed to on 30 November. Overnight, Brent oil has climbed further to around USD56.6/bbl at the time of writing.
In Italian politics, over the weekend, the president has given the current foreign minister Paolo Gentiloni the mandate to form a new government (set to be broadly unchanged), see FT.
Author
Danske Research Team
Danske Bank A/S
Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.
