Philly Fed Harker, who votes on policy this year

• European equity recovered opening losses and trade up to 0.5% higher. US equity markets also opened strong, ahead of the inauguration of US president‐elect Trump.

• British retail sales suffered their biggest slump in more than 4 years in December (‐2% M/M excl. auto fuel), denting what had been a promising fourth quarter. Consumer spending has been the main driver of Britain's economy since June's Brexit‐referendum decision, with other sources of growth like investment and trade lagging.

• Economic growth and inflation is expected to rise faster than previously expected in the EMU this year, according to the ECB's latest quarterly survey of professional economists. The ECB's private sector forecasts revised up GDP estimates to 1.5% from 1.4% while inflation is expected to average 1.4% from an earlier estimate of 1.2% in 2017.

• BoJ Governor Kuroda said the country's economy is likely to head toward a sustainable growth path as global trade and manufacturing activity pick up. But he added that Japan had yet to address major challenges, which were to heighten inflation expectations and firms to raise wages.

• Belgium's consumer confidence index advances to zero in January, the highest level since 2011, from minus 5 in December as unemployment concerns recede to levels last seen in early 2008, according to the National Bank of Belgium.

• Schlumberger, the world's largest oilfield services group, reported a year‐over‐year decline in revenue, as it eyes a slight uptick in capex spending for the coming year thanks to rebounding oil prices.

• Philly Fed Harker, who votes on policy this year, repeated that he expects three interest rate increases in 2017 if the labor market improves further and inflation moves to the Federal Reserve's 2% goal.

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