Scandi inflation takes centre stage

Danske Research Team Danske Bank A/S

Market movers ahead

In the euro area we have a packed week with Spanish elections, a potential decision on US car tariffs and the German Q3 GDP figures coming up.

Several Fed speeches and US retail sales figures will be scrutinised by the market for changes to the monetary policy outlook.

In the China focus continues to be on the trade negotiations with the US, while we expect macro data to confirm a soft picture with moderate signs of recovery.

In Japan we expect solid GDP growth of around 0.5% q/q in Q3.

In Scandinavia, inflation figures for October and labour market data will take the limelight, especially in Sweden.

Weekly wrap-up

Further optimism that the trade war has peaked and a phase one deal is in the pipeline, including a roll-back of some tariffs.

Building consensus that the Fed should wait and see how things play out before acting again.

The Bank of England shifts from a neutral policy stance to a dovish one.

Risk appetite returns on the back of the further trade deal optimism, pushing US and European yields higher.

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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.

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