In the US, the FOMC minutes from the February meeting are due out. The statement did not contain much interesting news but the minutes may enlighten us on the different stances within the FOMC. We do not expect much news from the minutes either as the Fed is waiting for more news on Trumponomics. In addition, Fed Governor Jerome Powell (voter, neutral) is due to speak tonight on the economic outlook and monetary policy.
German Ifo expectations fell from 105.5 in December to 103.2 in January and we expect it to decrease further in February to 102.5. Despite the high level in the survey in Q4 16, pointing towards very strong German GDP growth, actual economic activity was 'just' 0.4% q/q in the first release. Overall, optimism about growth prospects for the start of 2017 could be on the decline.In the UK, the second estimate for GDP growth in Q4 is due out, which is somewhat interesting, as the expenditure components such as private consumption and investments in Q4 are included for the first time in this release. While growth continued at the same pace in H2 16 after the EU vote, we think GDP growth will slow down eventually this year.
In Scandinavia, Norwegian LFS-unemployment data for December (November-January) will be published this morning, while the Swedish Debt Office will release its updated borrowing forecast. For more info see 'Scandi Markets' on page 2.
To read the entire report Please click on the pdf File Below