Market movers today
After some quiet days (at least in terms of economic data releases), we have a more action packed day ahead of us. We estimate euro area HICP core inflation rose to 1.1% y/y in November from 0.9% in October, as we estimate a rebound in volatile components such as package tours and services related to transport. Here and now, it should not matter much for the ECB after its decision to extend QE to September 2018.
In the US, we estimate PCE core index rose 0.2% m/m in October, as indicated by the CPI figures released already. This would push the PCE core inflation rate up to 1.4% y/y from 1.3%, still well below the Fed's 2% target. Note that the Fed has seemed a bit more concerned about the persistently low inflation in recent weeks although this should not change that the Fed is on track to hike in December.
Also, a lot is going on in the Scandies. In Sweden, the government may decide on the FSA's amortisation proposal. In Norway, retail sales data is due. In Denmark, the second release of Q3 GDP growth is also due.