Danske Research Team
Danske Bank A/S
Market movers today
-
US industrial production, final euro area HICP December inflation figures and Chinese Q4 GDP data are the highlights of the data calendar later in the week.
-
Today, the Bank of England's newest external member, Silvana Tenreyro, is due to speak about productivity growth in a first speech that could hold clues to her out look for interest rates, ahead of the UK's inflation release tomorrow.
-
In Sweden, Valueguard house price indicators for December are due out , where we look for another decline (see next page).
Selected market news
In Japan, the Bank of Japan kept purchases unchanged. In addition, Governor Haruhiko Kuroda stated overnight that easing measures will stay in place until the inflation target has been met .
Late on Friday, the ECB's Jens Weidmann stated that ‘as far as central bank interest rates in the euro area are concerned, however, the immediate risk of change is currently low. After all, the Governing Council has made it clear that interest rates will remain at their current levels for a longer period of time and well beyond the time horizon of net asset purchases.....a faster end to net asset purchases with a clearly communicated end-dat e would have been just ifiable' and the full normalisation of monetary policy will therefore be a long path', thus signalling that rate hikes are still a while away.
On Friday, US Treasury Secretary Steven Mnuchin said he was confident that an agreement would be struck to avoid government shutdown before the current short -term spending bill expires on 19 January – either with a long-term or short -term deal.
On Saturday, Iraq was supporting the call for OPEC oil production cuts to remain in place throughout 2018. There has been some speculation about whether OPEC would end cuts early following the recent price rally. In addition, the US oil rig count has started to rise again.
This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector.
This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange.
Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.
Recommended Content
Editors’ Picks
EUR/USD consolidates recovery below 1.0700 amid upbeat mood
EUR/USD is consolidating its recovery but remains below 1.0700 in early Europe on Thursday. The US Dollar holds its corrective decline amid a stabilizing market mood, despite looming Middle East geopolitical risks. Speeches from ECB and Fed officials remain on tap.
GBP/USD advances toward 1.2500 on weaker US Dollar
GBP/USD is extending recovery gains toward 1.2500 in the European morning on Thursday. The pair stays supported by a sustained US Dollar weakness alongside the US Treasury bond yields. Risk appetite also underpins the higher-yielding currency pair. ahead of mid-tier US data and Fedspeak.
Gold appears a ‘buy-the-dips’ trade on simmering Israel-Iran tensions
Gold price attempts another run to reclaim $2,400 amid looming geopolitical risks. US Dollar pulls back with Treasury yields despite hawkish Fedspeak, as risk appetite returns.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network price is defending support at $1.80 as multiple technical indicators flash bearish. 21.67 million MANTA tokens worth $44 million are due to flood markets in a cliff unlock on Thursday.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.