Market movers today
The calendar is thin again today and overall focus remains on market sentiment. US stocks closed higher for the second consecutive day yesterday.
The most important release is the UK CPI inflation. We estimate CPI inflation fell from 3.0% in December to 2.9% in January, driven mainly by a smaller contribution from the energy component, as a big monthly increase in January 2017 falls out, and food. We estimate CPI core inflation rose from 2.5% to 2.6%. CPI inflation remains one of the key release after Bank of England turned more hawkish at last week's meeting, see Bank of England review: Launching a hiking cycle , 8 February.
Despite being a tier-2 release, look out for the US NFIB small business optimism for January. Business optimism is very high at the moment indicating increasing growth in business investments.
IEA will publish its monthly oil market report today. Following the recent rise in the US oil rig count, oil market fundamentals have come back into focus and the market will watch out for revisions in particular to US output forecast.
To read the entire report Please click on the pdf File Below: