It is a quiet start to week in terms of data releases and the market probably will continue to digest Friday's very strong US labour market report.
In the euro area, focus will be on the October Sentix investor confidence and German trade balance data for September. We believe the Sentix investor confidence indicator has bottomed for now and expect a moderate increase as the financial stress has eased due to signs of stability in China and Mario Draghi surprising the markets by opening the door for a deposit rate cut. In terms of German trade balance data focus will be on exports and the impact of the weakness in emerging markets.
During the week several FOMC members including Evans, Dudley and S. Fischer will speak. This will attract some attention and it will be interesting to hear their views on the economic outlook in the light of the strong US labour market data.
In Scandinavia, focus this week will be on inflation with Norwegian October inflation prints due tomorrow, while Swedish Prospera inflation expectations and October inflation prints are due Wednesday and Thursday, respectively.
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