Allan von Mehren
Danske Bank A/S
Market Movers ahead
In the euro area the flash estimate for HICP inflation in November is released, and we expect it to decline back to this cycle’s low of 0.3% y/y .
German IFO expectations are expected to give a sign of improvement, as we forecast an increase for the first time since April. ZEW expectations increased for the first time in 10 months in November, and this is usually a good indication that IFO expectations will also increase.
Money supply and lending figures for October are also released in the euro area and we expect recent improvements to continue.
Consumers will be in focus this coming week in the US, with two US consumer confidence surveys up for release. The outlook on inflation expectations in the consumer surveys will be the most important item to watch, given the importance of these expectations for the Fed.
In Japan most of the hard economic data for October will be released next week, where we see industrial production and retail sales as the most important.
Next week OPEC meets in Vienna for its biannual assessment of its output target.
Global macro and market themes
The biggest stimulus to consumers from an oil price decline since 2008. It strengthens the recovery case in early 2015 and thus risk asset performance.
Bond yield decline stabilises on rise in risk appetite.
Tentative signs of bottoming in the euro area.
Rise in US core inflation eases downside inflation risks.
Rate cut in China underpins pick-up in growth.
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
AUD/USD gains ground on hawkish RBA, Nonfarm Payrolls awaited
The Australian Dollar continues its winning streak for the third successive session on Friday. The hawkish sentiment surrounding the Reserve Bank of Australia bolsters the strength of the Aussie Dollar, consequently, underpinning the AUD/USD pair.
USD/JPY: Japanese Yen advances to nearly three-week high against USD ahead of US NFP
The Japanese Yen continues to draw support from speculated government intervention. The post-FOMC USD selling turns out to be another factor weighing on the USD/JPY pair. Investors now look forward to the crucial US NFP report for a fresh directional impetus.
Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar
Gold price clings to the $2,300 figure in the mid-North American session on Thursday amid an upbeat market sentiment, falling US Treasury yields, and a softer US Dollar. Traders are still digesting Wednesday’s Federal Reserve decision to hold rates unchanged.
Solana price pumps 7% as SOL-based POPCAT hits new ATH
Solana price is the biggest gainer among the crypto top 10, with nearly 10% in gains. The surge is ascribed to the growing popularity of projects launched atop the SOL blockchain, which have overtime posted remarkable success.
NFP: The ultimate litmus test for doves vs. hawks
US Nonfarm Payrolls will undoubtedly be the focal point of upcoming data releases. The estimated figure stands at 241k, notably lower than the robust 303k reported in the previous release and below all other readings recorded this year.