Danske Research Team
Danske Bank A/S
Market movers ahead
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In the US, we expect the Federal Reserve to raise the target range by 25bp to 2.25- 2.50%, but the focus will be on what policy path the Fed signals going forward.
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In Sweden, we see a 70% chance of the Riksbank hiking at the December policy meeting.
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In the UK, the focus remains on Brexit after a hectic week. We do not expect major changes to the policy signals from the Bank of England.
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In the euro area, final November HICP and German Ifo numbers are the key releases.
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The main focus in China will remain on the trade talks with the US.
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We expect the Bank of Japan to keep its ‘QQE with yields curve control' policy unchanged, while November inflation figures will likely move south again.
Weekly wrap-up
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Markets continue to be choppy as politics dominates the news flows.
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Another hectic week in Brexit land, where PM Theresa May successfully fended off a no-confidence vote.
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The Italian government proposed cutting its 2019 deficit to 2.04% (from 2.4%) in a concession to EU concerns, causing a rally in Italian government bonds.
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The ECB concludes its QE programme, but sounds a dovish tone on the near-term growth and inflation outlook.
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