Sweden: A hike for Christmas

Danske Research Team Danske Bank A/S

Market movers ahead

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.
In Sweden, we see a 70% chance of the Riksbank hiking at the December policy meeting.
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.
In the euro area, final November HICP and German Ifo numbers are the key releases.
The main focus in China will remain on the trade talks with the US.
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

Markets continue to be choppy as politics dominates the news flows.
Another hectic week in Brexit land, where PM Theresa May successfully fended off a no-confidence vote.
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.
The ECB concludes its QE programme, but sounds a dovish tone on the near-term growth and inflation outlook.

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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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