Sweden: US-China trade talks are the 'name of the game'

Danske Research Team Danske Bank A/S

Market movers ahead

Trade talks between China and the US are the ‘name of the game' next week, with the meeting taking place on 30-31 January.
In the UK, the House of Commons is due to vote on Prime Minister Theresa May's Brexit Plan B (and amendments) on Tuesday.
The government shutdown may affect the US jobs report, while we do not expect the FOMC meeting to bring any new signals.
In the euro area, we do not expect the Q4 GDP flash report to show any significant rebound from the lacklustre Q3 number.
The euro area HICP inflation number for January is set to show a further decline to 1.3%, driven by lower energy prices.

Weekly wrap-up

In the UK this week, Prime Minister May presented her Brexit Plan B on Tuesday, which, as expected, did not really provide any clarification.
As expected, the ECB made no changes to its policy rate or forward guidance at its meeting this week and we still believe a rate hike in December is likely.
Euro area PMI revealed further weakness, while the US counterpart painted a stronger picture of the US economy.
Ahead of the crucial US-China trade talks next week, US Commerce Secretary Wilbur Ross said this week that while the two countries are still ‘miles away' from a deal, he thinks there is a fair chance they will reach one eventually.

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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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